USDR Distribution Mechanism
Per our announcement in August, USDR will be airdropped to users, affected by our escrow smart contract exploit, on Monday 1st of November. Affected users will be airdropped the tokens to their ERC20 wallets on that day.
What is USDR?
USDR is a redeemable token given to users affected by DAO Maker’s escrow contract exploit earlier this year. Each USDR is redeemable for $1.1 worth of DAO in 1 year.
USDR can be traded on the market, at market rates. Alternatively, it can be held for 1 year and then be redeemed for $1.1 worth of DAO (at the 1-week trailing price on the redemption week).
Why is USDR Redeemable for $1.1?
Rather than redeeming USDR for $1, it is being redeemed for $1.1 to offer a 10% yield. This yield is compensation for the time delay. Given that stablecoin rates on Compound are currently 6–8%, a 10% yield is fair compensation.
How Much USDR Will Each Person Get?
The USDR you receive will be equal to your compromised USDC amount, minus the USDC given to you via airdrop earlier this year.
Which Network is USDR Distributed On?
USDR will be minted and distributed on Arbitrum.
There are a few key targets the liquidity pool of USDR must meet:
- low cost trades
- Uni v3 pool, for concentrated liquidity
- EVM compatible, for easy access
For the above reasons, Arbitrum was the optimal choice.
(Uniswap v3 on Ethereum would have concentrated liquidity, but high fees. Pancake would have low fees, but no concentrated liquidity.)
Where is USDR Traded?
On Uniswap v3, on the Arbitrum network.
How to Use Arbitrum?
With MetaMask, but with the network settings switch to the Arbitrum network. The experience is similar to changing from Ethereum to BSC.
A surplus of 500,000 USDR will be minted. This supply will exist solely to allow us to create the liquidity pool. It’s unlikely that these surplus USDR get bought, but in case they do, they will also be qualified for redemption.
The DAO Maker Team