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.

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

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.

Additionally, deUSD serves as the rails for institutional assets to natively enter DeFi. Used exclusively by Securitize, it is the default currency bringing onchain composability for BlackRock, Hamilton Lane, and others.

For publicly accessible deUSD, users receive native yield, earning from a mixture of treasuries and funding yield. deUSD is a key component of the Elixir ecosystem and will also serve as preferred collateral for orderbook exchanges.

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. The long-term vision of deUSD will be far reaching, serving as a superior cross-chain DeFi-native currency.

Most of the deUSD backing during this period will remain in USDS and Tether as the OCF grows. 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.

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 can power decentralized execution through verifiable proofs of execution, open-source code, and non-custodial, on-chain liquidity, 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. Used exclusively by Securitize. The default currency bringing onchain composability for BlackRock, Hamilton Lane, and others. 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 OCF 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 only way for tens of billions of dollars in RWAs to access DeFi composability, with deUSD being mintable against a host of institutional assets with isolated exposure and unified liquidity.

A majority of Elixir’s DEX integrations will support deUSD as collateral, boosting Open Interest and Total Value Locked (TVL). 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 partnered exchanges.

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