DefiDollar’s Stablecoin index is live!
Mint DUSD using DAI, sUSD, USDT and USDC.
What is DefiDollar (DUSD)?
DefiDollar’s first product offering — DUSD is a stable asset backed by an index of stablecoins. DUSD is a hedge against volatility and provides portfolio risk diversification.
https://app.dusd.finance/
Key highlights:
- Stablecoin index backed asset
- Professionally audited
- Currently built on top of Curve
- Yield farm CRV, SNX
- Stake for higher rewards (Staking carries risks, understand them before staking)
DUSD uses DeFi primitives to maintain its peg to one Dollar. As DUSD is not a unit of debt obligation (unlike in Maker and sUSD) it provides a swift arbitrage opportunity aiding in stabilizing its peg.
To protect against fluctuations in price DUSD has a native staking pool which provides a volatility cushion.
The peaks supported by the system dictate which stablecoins can be used to mint DUSD. We are launching with support for the Curve sUSD pool. Thus, it is possible to mint DUSD with DAI, USDT, USDC, and sUSD. We are considering various other peaks and will be adding them gradually in the future.
Lead up to the launch: Audits & Beta testing
We care for our community and understand that professional audits are a key measure to protect users against potential exploits. Thus we engaged in not one, but two formal audits. We have been working together with Peckshield & Quantstamp as our audit partners. You can find the audit reports here.
DUSD contracts were deployed to mainnet and we have monitored the system to identify any surfacing issues in beta testing. The deployment was done after implementing the fixes suggested in the audits and the team evaluated a few key parameters during testing on mainnet.
The protocol is working as intended and we are a GO for the public launch!
Note: While the codebase is audited DUSD remains an experimental piece of software built using composable Defi primitives and thus carries significant risk. We STRONGLY urge anyone interacting with these contracts to exercise caution! Please do not commit any funds that you can’t afford to lose.
What about rewards?
The DefiDollar protocol accrues the following fees and rewards :
- Trading fees — LP’s get trading fees from Curve
- CRV — Curve’s Liquidity Mining
- SNX — Synthetix’s incentivization of the sUSD pool
- Redemption fees — When converting DUSD to underlying assets
These rewards are distributed among DUSD LP’s and stakers in the following manner:
DUSD LP’s: Certain DUSD balancer pools will be incentivized with the CRV & SNX liquidity mining rewards. More details on this soon.
Stakers: Curve Trading Fees + DUSD Redemption Fees + SNX & CRV liquidity mining rewards.
Stakers harvest the trading and redemption fee from the total DUSD supply.
For e.g if the total supply of DUSD is 1000 and Staked DUSD is 100. These 100 staked DUSD get rewards for the fees earned on the complete 1000 DUSD supply.
Use of Oracles:
DefiDollar leverages Chainlink oracles to pull the price reference data for the supported stablecoins.
The Future!
We envision the protocol to be governed by its users in due time. This includes, but is not limited to the addition of peaks, the relative weights assigned to them, medianizing oracles and distribution of protocol rewards. Steps to transition to community based governance will be initiated once we achieve protocol market fit. We are brainstorming to zero in on the best approach to make this happen.
Join our Discord to participate in the conversation.
How to start using DefiDollar?
Just connect to the app using a wallet having some stablecoin balance.
Find detailed instructions here.
