Add USX into verified pools of Fuse
I’m a dForce community member helping with integrations.
References –
· Project: https://dforce.network/
Summary
We propose to add USX to the FeiRari (Fei DAO Pool), which has over $400mil supplied across 10 assets. The pool would benefit from increased diversification of stablecoin assets.
We also propose that a new Verified Pool be added, with suggested name “dForce Community Pool”, with liquidity injection from Fei.
dForce community in total would be happy to put up ~$10mil in initial liquidity bootstrapping.
dForce USD (USX) is a native over-collateralized decentralized stablecoin with current circulating supply of close to 200mil and it is currently deployed across Ethereum, Arbitrum, BSC, EVMOS and Optimism and it looks to deploy to more chains, like Polygon and Fantom.
USX also has the feature which could be highly integrated with lending protocol, that could supply liquidity into lending protocol, it is similar to DAI’s D3M feature, that could help boost Fuse’s TVL. USX would also allow Fuse ecosystem to diversify its decentralized stablecoin offerings.
For example, USX could be added to existing verified pools on Rari, such as Tetranode’s Locker, which as $138mil supplied at the time of writing. Adding USX support to Fuse will allow USX users to either deposit USX and increase the TVL, or borrow out resulting in increased liquidity. Once enough liquidity is in the Fuse system, users of Fuse will be able to further leverage their capital and diversify their stablecoin holdings, resulting in increased risk management.
USX’s liquidity model allows it to supply liquidity directly into Fuse via PDLP, this is similar to DAI’s D3M module, which will directly contribute USX liquidity to Fuse on demand.This could boost Fuse’s TVL by a large amount.
Decentralized stablecoin is critical infrastructure in DeFi, we believe it is in Fuse’s benefit to support more decentralized stablecoin and it will help cement Fuse’s position as the open interest rate protocol.
In addition, users of USX would be motivated to utilize Fuse for leverage and arbitrage between stablecoins through borrowing on Fuse and to develop a variety of alpha creation strategies by utilizing Fuse and to increase Fuse’s protocol revenues.
Overview
USX is the first decentralized stablecoin which is easily to be integrated with any lending protocol and vaults models, where it could support both pool-based multi-collateral as well as isolated-collateral vaults, makes it extremely flexible and efficient to support collaterals of different risk profiles, i.e major crypto as well as yield-bearing crypto and LP tokens.
USX is also the first decentralized stablecoin that features over-collateralization, highly capital efficient via PDLP (Protocol-Direct-Liquidity-Provision) and cross-chain operation (integrated with c-Bridge).
Its pegging mechanism is mainly determined by market supply and demand driven by interest rate policy, i.e in the event of depegging, to increase interest rate to shrink its supply or to lower the interest rate to increase supply and bring the price back to $1. USX is also setting up its liquidity pools against USDC and BUSD across a number of DEXes (i.e Dodo, Curve and Uniswap), which help to anchor its peg.
With circulating supply of close to 200m and growing, it is currently deployed and bridged across Ethereum, Arbitrum, Optimism and BSC, making it the few decentralized stablecoins with cross-chain capabilities.
USX is integrated with c-Bridge (Celer’s bridging protocol) with zero slippage cross-chain capability. We see Fuse is on Ethereum and Arbitrum, so if USX is added to Fuse, users will be able to move their USX cross-chain between Ethereum and Arbitrum with zero slippage, potentially resulting in increased activities, and more revenue for Fuse.
Project History
dForce builds a complete set of DeFi protocols covering assets, lending, trading, serving as DeFi infrastructure in Web 3. USX is dForce’s decentralized stablecoin protocol.
dForce has been engaged in DeFi since 2019 and is backed by Multicoin, CMBI and Huobi Capital with its core team of crypto evangelists who have been into crypto since 2013.
dForce is currently deployed on Ethereum, Arbitrum, Optimism, and BSC with a TVL of $495m (Data Source: Defi Llama ).
Our core protocols include both pool-based multi-collateral and vault-based single-collateral multi-currency stablecoins (USX and EUX).
We also have a pool-based multi-sided lending protocol which supports multiple collaterals with a market-driven dynamic interest rate model.
Security Considerations
dForce’s smart contracts are audited by Trail of Bits, ConsenSys Diligence, Certik and Certora, with a bug bounty launched through Immunefi.
Attached are the audit report for USX