aDAI / aSUSD Curve Pool
$DUSD is a meta-stablecoin index backed by Curve LP tokens. It aims to provide the easiest and safest way for users to store value in stable digital assets. To that end, the DefiDollar team is championing a Curve proposal to add an Aave-Dai/sUSD curve pool. If you think that’s a good idea, please vote with your veCRV here.
The proposed pool will be of particular interest to decentralization maximalists and users who want to hedge against any particular centralized stablecoin failing while also capitalizing on the following:
- Trading fee from stablecoin price fluctuations.
- Having Aave tokens instead of vanilla coins will maximize capital efficiency.
- Capture the momentary upticks in yield of a particular underlying asset i.e. it is common to see Dai, sUSD, giving out 30%+ APR but only for a few hours.
- Farm $CRV — may choose to lock it to gain voting power and boost.
Relevance to $DUSD
When the pool goes live (contingent on vote passing), we will integrate it into the core DefiDollar protocol. Note that our smart contracts were written in a modular manner to support such integrations from day 1. We call these integrations as peaks. Every $DUSD coin is an average of the funds held in various peaks.
Implications
- Users will be able to mint DUSD with sUSD. Conversely, a percentage of DUSD will be backed by sUSD.
- Share of the DUSD funds in this peak will be resistant to any centralized coin failing. This gives us the direct benefit that DUSD doesn’t go to 0 if any centralized coin depegs.
- Aave coins will accrue interest which trickles down to ibDUSD and ibDFD LPs.
