DUSD on BSC - The case for scalable Meta Stablecoins
DUSD has been live on Ethereum since late August. We have since been eliciting feedback from our community and shipping product updates to that accord. This has resulted in a Savings Account feature and yield diversification for LP’S with a Curve Pool + Yearn Finance vault integration.
The DeFi summer and yield farming led transaction explosion has resulted in high fees and consequently priced out retail users. It has become a whale’s game and average users find it increasingly uneconomical to access open finance primitives like yield farming and diversification across protocols.
Add this to the already overwhelming decision for a novice to decide what stablecoin to hold and what are the pros and cons of these different assets.
This makes us believe that there is a lot of potential for a stablecoin index on BSC. On launch, DUSD will be the first metastablecoin on BSC and will introduce the following:
Yield diversification across protocols
Retail focused savings account:
Leveraging cheap gas fees on BSC we will be able to provide a simple savings account where users can enter with stablecoins and earn interest in stables. Imagine being able to put $50 into savings while not having to spend $50 in gas!!! There is scope for having structured SIP for the savings account and more.
Yield Diversification :
The stack for Ethereum is as follows: We build using Curve Finance pools and the resultant LP tokens are deposited to yearn finance vaults to maximize yield. These protocols will be replaced by the BSC native protocols that help us fulfil our target of maximizing yield for our LP’s. We aim to gradually add multiple protocols to provide the best yields to DefiDollar LP’s.
We are currently exploring the following protocols live on BSC for the DefiDollar BSC stack:
DUSD on BSC marks the transition of DefiDollar into a multi chain protocol aimed at retail users and institutions alike. DFD will remain the protocol’s governance token on both Ethereum and BSC.