DefiDollar
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DefiDollar

DefiDollar is now integrated with yVault

Mint $DUSD using yUSD & yCRV in addition to DAI, USDT,USDC and TUSD

Tldr:

  • Mint DUSD with yUSD, yCRV, DAI, USDT, USDC & TUSD
  • Swap DUSD to USDC to exit the yVault without paying the 0.5% exit fee.
  • Current staking mechanism to be phased out & another introduced in lieu
  • Add DUSD liquidity to Balancer 50:50 DUSD-USDC pool to earn rewards from yVault & $BAL liquidity mining rewards.

We recently published a proposal to integrate the yearn finance’s yVault as a peak in the DefiDollar ecosystem.

The yVault integration will help us inch closer to our goal of providing users access to a diversified stablecoin index that also provides stable returns.

The team has been hard at it to ship the integration and we are happy to announce that it is finally going live. Users will be able to use yUSD and yCRV in addition to the vanilla stablecoins like DAI, USDT, USDC and TUSD to mint DefiDollar ($DUSD).

Try out the app here: https://app.dusd.finance/

This integration will also be accompanied by changes in the existing protocol which are described below:

The current staking mechanism will be deprecated

We have been constantly eliciting feedback from our community on the staking process. After having factored in their thoughts and having had numerous discussions we have decided to deprecate staking in its current form. Staking will be reinstated at a later date with a more robust design coupled with a user friendly interface.

The sUSD pool peak will be removed and replaced with the yPool

We will be adding support for the yPool via the vault integration. This means that $DUSD gets exposure to these stablecoins: DAI, USDT, USDC, & TUSD.
This composition overlaps with the exposure to the sUSD pool composition with the exception of sUSD being replaced by TUSD. We want to have more crypto collateral backed stablecoins in the index and will be coming up with a sweet new integration to restore the exposure DUSD gets to sUSD.

The liquidity currently locked in the protocol will be migrated to the ypool from the sUSD pool.

During this migration Safety and security of the user funds are our utmost priority and we have got the migration code audited from Peckshield — our audit partners.

The migration from sUSD pool to the yPool will be divided into 2–3 transactions. This is to minimize slippage. We have also initiated a 2 on 2 multi-sig to ensure added security to the migration transactions.This is currently managed by the team but we are looking to add other trusted community members to the multi-sig in the future.

If you have staked DUSD please un-stake it from the web-app : https://app.dusd.finance/

What happens to the existing rewards?

The accrued rewards will be distributed to the DUSD holders & stakers based on their retroactive DUSD holdings for the past two weeks.

The current accrued rewards comprise the farmed CRV & SNX with the addition of the Curve trading fee. These rewards will be converted to DUSD and then sent to the community. The process is similar to the previous reward distribution and can be referred here.

What about future rewards?

To simplify and augment the protocol reward distribution we have initiated a 50–50 DUSD-USDC Balancer pool. The Balancer community has been extremely supportive and has whitelisted DUSD for the BAL rewards.

This approach will help DUSD become more liquid and will enable users to increase/decrease exposure to the DUSD stablecoin index in a simpler manner while expending less gas.

DUSD LP’s can avail the following rewards by minting DUSD and adding liquidity to the aforementioned balancer pool:

To be distributed retroactively:

  • Yield from yUSD vault harvested to DUSD — This is accrued as a consequence of yVault strategies.
  • BAL LP rewards
  • DUSD redeem fee (0.02%) — Redemption of DUSD to underlying stablecoins accrues a 0.02 % redeem fee

Accrued in real-time:

  • Balancer Pool trade fees (0.05%)

What does it mean for users ?

Fresh DUSD minters:
You can now mint DUSD using: DAI, USDT, USDC, TUSD, yCRV (yDAI+yUSDC+yUSDT+yTUSD) & yUSD (yyDAI+yUSDC+yUSDT+yTUSD).

This allows for users contributing liquidity to Curve yPool and to the Yearn yVaults to directly mint DUSD with yCRV and yUSD respectively.

You can choose to add DUSD liquidity to the DUSD-USDC balancer pool to earn rewards.

Note: Minting DUSD via yUSD and exchanging it for USDC on the balancer pool also provides a way to exit the Yearn vault without having to pay the 0.5% exit load fee.

DUSD Holders:
Users who have staked their DUSD, should unstake the same.
Please note that you DO NOT have to redeem, i.e. withdraw your assets into the underlying stablecoins. If you have not staked then you have to take no action.

Next, provide liquidity to the balancer pool to be eligible for the the DUSD protocol & yVault rewards.

Please note: If you do not become and LP to the balancer pool you lose out on claim to the future rewards.

In case of any queries please feel free to reach out to us on Discord.

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Siddharth Jain

Siddharth Jain

Building @DefiDollar

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