DefiDollar DUSD [Alpha Tractor]

There's a new stablecoin on the block... and it earns CRV & SNX.

DefiDollar is the latest stablecoin contender, offering an indexed approach to price stability using a volatility cushion for the “DeFi Dollar” (DUSD).

By leveraging Curve’s sUSD pool, users can mint DUSD using DAI, USDC, USDT, sUSD. The exact price of DUSD is a function of liquidity in curve and stablecoins prices from Chainlink oracles.

Why DUSD?

DUSD LP’s contribute liquidity to the Curve sUSD pool - called a Peak - meaning they collect lending interest alongside CRV and SNX rewards. DUSD staking offers collateral of last resort in tandem with a reserve pool to maintain the peg. More on how this works here.

The key benefit is that LPs can passively collect rewards, rather than having to manually claim in situations of high gas. We can liken DUSD staking to yUSD Vaults that leverage both the yCRV and ysusd pools with more protocols on the horizon.

Perhaps the most promising aspect of DefiDollar is the series of professional audits the project received prior to launch. In the midst of an unaudited heyday, DefiDollar is one platform users can be confident puts security first.

Why is this an Alpha Tractor?

In the spirit of safety, DefiDollar launched with a $3M ceiling on the amount of DUSD which could be minted.

In less than one hour after launch, that cap was reached.

DefiDollar @defidollar

We've hit the TVL cap of $3mn 🤯 Humbled by the amazing response! Will update the community when we revise the TVL cap. Please note that DUSD minting is paused for the time being.

According to the team, the ceiling could be raised as early as next week, meaning readers should keep a close eye on the project for extended dates.

Outside of the yield earned from DUSD staking, the original article states that DefiDollar “envisions the protocol to be governed by its users in due time” after establishing product-market fit.

As any honest worker knows, “governed by its users” suggests a future governance token.

While details of a native token have not been announced, one can only assume this is where the project is headed, making DefiDollar an interesting farming opportunity set to mirror the meteoric growth of mStable’s MTA governance token.

To stay up with DefiDollar, follow them on Twitter!

——

All info in this newsletter is purely educational and should only be used as research. DeFi Pulse is not offering investment advice, endorsement of any project or approach, or promising any outcome. This post is prepared using public information and does not account for specific goals or financial situations. Be careful and keep up the honest work!