deUSD

deUSD is a core component of the Elixir ecosystem. Introducing the future of DeFi money.

deUSD Overview

deUSD ("decentralized US Dollar") is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir Network.

deUSD's backing is comprised of treasuries via MakerDAO's USDS t-bill protocol, and stETH used by the network to short ETH perpetuals (creating a delta neutral position).

Through leveraging the funding rate basis trade on Ethereum, the Elixir network facilitates the creation of a synthetic dollar designed to capture positive funding rates. Even in a negative funding rate environment however, deUSD is built to be resilient.

deUSD is DeFi’s only dollar serving as the rails for RWA assets to natively enter DeFi. Used exclusively by Securitize, deUSD is the default currency enabling fund holders to use DeFi without changing their original asset exposure. This brings onchain composability for assets from BlackRock, Hamilton Lane, and others.

deUSD will also be used as the preferred collateral within Elixir's ecosystem, with most Elixir-powered exchanges natively accepting it as yield-bearing collateral. There was an initial loan from Elixir Technologies Ltd. of 3m USDT to kickstart the OCF, which will be repaid over time in a fixed ratio. The long-term vision of deUSD is far reaching, serving as a superior institution-friendly and DeFi-native currency.

It is important to note that deUSD is not pegged to USD through a 1:1 reserve of US dollars for each deUSD minted, nor is there any centralized issuer holding any amount of US dollar or other real world asset to support the value of deUSD.

Key Advantages Over Alternative Synthetic Stable Assets

This asset boasts several advantages over other forms of synthetically stabilized assets, including:

  1. Decentralization: Elixir Network powers decentralized execution of mints and redemptions through verifiable proofs of execution and open-source code, eliminating the need for typical centralized intermediaries. In the long term, the network will allow anyone to permissionlessly mint or redeem deUSD directly onchain, further enhancing its decentralized nature.

  2. deUSD is DeFi’s only dollar serving as the rails for institutional assets to natively enter DeFi. Dive into the ecosystem here.

  3. Reducing basis exposure in negative funding rate environments: Via the Elixir Network, deUSD may mitigate basis exposure during negative funding rate environments by adjusting the backing as it decreases, with the goal of ensuring more resilience and stability.

  4. More stable collateral for Elixir ecosystem: deUSD will serve as the preferred collateral within the Elixir ecosystem, with six of the top decentralized orderbook exchanges (DEXs) accepting it as collateral on their exchange, enhancing its utility and liquidity.

A Crucial Component of the Elixir Ecosystem

deUSD will serve as a pivotal element of the Elixir ecosystem, intended to function as the preferred collateral for orderbook liquidity across both decentralized and centralized exchanges.

deUSD is the first gateway for asset holders from BlackRock BUIDL, Hamilton Lane SCOPE, and others to natively use DeFi with their RWAs while maintaining isolated backing.

A majority of Elixir’s DEX integrations will support deUSD as collateral, boosting Open Interest and Total Value Locked (TVL) on the exchange. Additionally, deUSD can also be directed toward native exchange integrations powered by Elixir, potentially unlocking further yield opportunities within the protocol and enhancing liquidity on powered exchanges.

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