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 synthetic dollar powered by the Elixir Network. deUSD is minted by stETH and sDAI, which are deposited collateral assets, which will be used to by the protocol to short ETH, creating a delta neutral position.

Through leveraging this funding rate basis trade on Ethereum, the Elixir network creates a synthetic dollar capturing positive funding rates. Even in a negative funding rate environment however, deUSD is built to be resilient.

The asset will also be used as the preferred collateral within Elixir's ecosystem, with most Elixir-powered exchanges natively accepting it. This enables users to earn yield from the protocol on their assets while boosting orderbook liquidity across a host of orderbook exchanges. The long-term vision of deUSD will be far reaching, serving as a superior cross-chain DeFi-native currency.

For the initial 10 week bootstrapping period after launch, proceeds will go towards bootstrapping the OCF. 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. Most of the deUSD backing during this period will remain in sDAI and Tether as the OCF grows.

It is important to note that deUSD neither has $1 collateralizing each deUSD minted nor has any issuer holding any amount of US dollar for 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 can power decentralized execution with verifiable proofs of execution, open source code, and non-custodial and on-chain liquidity without reliance on centralized parties. Long term, anyone will be able to permisionlessly mint or redeem deUSD onchain

2. Reducing basis exposure in negative funding environments: Via the Elixir Network, deUSD decreases basis exposure in negative funding environments as the overcollateralization fund (OCF) decreases

3. More stable collateral for Elixir ecosystem: deUSD will be the preferred collateral within the Elixir ecosystem, with six of the top orderbook DEXs accepting it as collateral on their exchange

A Crucial Component of the Elixir Ecosystem

deUSD will serve as a key component of the Elixir ecosystem, serving as the preferred collateral of orderbook liquidity across decentralized and centralized exchanges. Most of Elixir’s DEX integrations will accept deUSD as collateral on their exchanges, driving additional Open Interest and TVL. deUSD can also be pointed to native exchange integrations powered by Elixir for additional yield opportunities from the protocol, further driving liquidity on partnered exchanges.