Your technical questions answered
Community Q&A with Lead DeFi Developer Nic Duerr
Following the launch of our web-app last week, lead DeFi developer Nic held a Q&A in our Discord to answer questions from the community.
Read more about the plans for DUSD, FLUID, and the tech team’s upcoming projects below…
How do you plan to enforce the DUSD peg?
Arbitraging is currently possible — if the price is below $1.00, you can buy DUSD and redeem it one for one. If you go through our web app, we always guarantee the one to one peg.
The fees are still in place, which is something we are working on right now, but holders of FLUID tokens will get a much better fee structure than the default accounts that are in place right now, if they are willing to stake or lock their FLUID. That means that the people who support us will be the ones who will have the most profitable arbitrage opportunities.
We’ve recently been working on some other ideas regarding swaps between DUSD and other tokens, that will possibly be slippage-free trades. For on-chain arbitrage you need three assets and pools between all of them. Right now we provide the ETH/DUSD pool, and there are ETH pools to many other assets. So, for on-chain arbitrage, there would be one more pair required. This will come at some point, either from us or from somebody else, but on-chain arbitrage is not our main priority right now.
We are in the process of buying more ETH so that we can increase the liquidity on the pools and perform some arbitrage ourselves. We definitely will not only rely on other people to put the DUSD/ETH pool back at the precise peg. We are also looking to partner up with market makers to help us do exactly that.
What are the plans for increasing liquidity in the DUSD/ETH pool?
The pool we opened last week is just the first step, and we are fully aware that the liquidity in it is not as much as we would like it to have.
We have run into some issues in buying large amounts of ETH to make a really deep pool available. So, what we did last week was the migration of the already existing FLUID/ETH pool, so that we would at least have a DUSD/ETH pool available. Of course, that’s not the liquidity and depth that we want to have in that account or in that pool, but we will add more as soon as we have some more OTC deals completed.
What is the fee structure for redeeming DUSD to fiat?
We’ve heard your feedback on the 2% redeem fees and have decided to reduce these fees for a limited time to 0.5% — this will most likely run until we have the option of staking FLUID in place, at which point everybody can decide on their own if they want to stake and lock their FLUID tokens. Shareholders and community members who do this will get access to the premium account and reduced fees for both redeeming and minting.
Can the pool fees be reimbursed if we hold a certain amount of FLUID?
So far, there aren’t plans to reimburse those fees. When it comes, for example, to the FLUID staking, we are not just going to be looking at the amount you lock, but also how long you’ll lock. We definitely don’t want to build something that favors the rich people over the average community member.
Why is the fee for redeem higher than the fee for mint?
We want to make it super easy for people to get into crypto and to get a chance to participate in this new developing financial world. So, we want to make minting as easy as possible.
Redeeming directly to your bank account and soon being able to immediately spend that redeemed money on your card is a very high value proposition that we can offer our users. So, I think it’s fair that for this feature the fee is a bit higher.
But, we are working on the staking of FLUID tokens so that our shareholders and users can always reduce these fees significantly by buying and locking some of their FLUID tokens.
Will there be a DUSD listing on Coinmarketcap or on Coingecko?
We’ll definitely get it listed as soon as possible.
At time of writing, DUSD has been listed on Coingecko
What are the plans for DUSD adoption in DeFi protocols?
DUSD is permissionless, and completely ERC20 compatible, so any project should be able to easily integrate it if they are interested.
This is where the community comes in — If you want DUSD to be used by other projects such as Aave or your preferred protocol, you can go to that community and put forth a governance proposal of adding DUSD as an asset to that protocol. Then the token holders or the governance process of that token or the project will decide if they want DUSD to be listed there.
We will also follow up with some interesting projects that we would like to partner up with and integrate. And reach out to our teams as well — we are happy to help and provide you with any information or anything you need.
Will there be a DUSD/USDC pool in Curve?
Curve doesn’t allow a DUSD/USDC pool, but it does allow 3CRV or Arbitrum 2 Curve pools. As with all the pools it’s a question of liquidity. To make the pools really usable, we need to add as much liquidity to them as possible, which also means we shouldn’t spread it over too many different pools, especially at the beginning. We would rather have a really deep ETH pool than split liquidity across multiple pools, multiple assets, or multiple chains.
For the short term, I don’t think we’re going to open the Curve pool ourselves. If somebody else is interested in doing that, DUSD is permissionless, so anybody can open it.
On Uniswap, one of our users has already opened a USDC/DUSD pool, although there’s very little liquidity in it. So if that’s interesting for you, then maybe you’d want to add liquidity to that, or partner up with some other people from the community and open these pools yourselves.
Will we be able to purchase FLUID directly with aETH?
I assume that refers to the routing issue we currently have on SushiSwap. I need to look into why it doesn’t route properly yet; I assume that it is because the pools are so new. We definitely want to set it up in a way where it’s very easy to go from aETH to FLUID and back, and Amadeo is currently looking into fixing that.
Will the visibility of FLUID on SushiSwap be addressed, so we don’t need to add an address every time we need to trade or propose?
Getting into the default list tokens in SushiSwap is something we will definitely look into and try to fix.
What are the Fluid programmers working on now?
Recently, the priority has been the launch of the web app, and making sure everything is going smoothly. Now that the launch is over and the initial initial pools have been created, we will discuss what the next steps are going to be.
One focus is definitely going to be the mobile app, which we’ve been working on in the background and will roll out for the testing phase soon. This mobile app is going to be more targeted towards the mass market, whereas the web app is more for crypto users. Another thing that is coming is the digital cash account, and then non-KYC and worldwide accounts.
We are always open to improving our flows and our presentation towards the community, so you’re welcome to send us a suggestion on our road map and let us know what you consider to be the most important things to work on. Of course, there will always be some tradeoffs between what the community wants and what has to be done on our side for security purposes or expanding to different regions.
What are Fluid’s plans for generating revenue?
Fees will be one aspect, but the most margin will come from the savings products and other similar products. These will generate yield in the DeFi world, and make it simple for mass market users to get interest on their savings accounts. A large part of that yield will be passed on to the user, but on top of that will be a margin that goes to the company.
That was it for this week.
Join us Wednesday March the 2nd, when CMO Jessica Walker will be talking about marketing, and any other questions you might have.
That Friday the 4th we’ll have our general community AMA, where Alexander Vik will join us!
See you there.
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