deUSD Architecture

A look into the system that powers deUSD

deUSD will be fully collateralized by Ethereum, using a corresponding Ethereum short position. Based on liquidity constraints, this basis trade will initially run using the liquidity on centralized exchanges (using funds held in a multisig onchain), but deUSD has a clear path to fully running the trade on DeFi exchanges long term.

Funds never live on centralized exchanges (rather in a multisig onchain), and will be fully noncustodial for DeFi exchanges. Execution is decentralized and powered by the Elixir network.

From a market maker’s perspective, the mint/redeem mechanism for OES multisig funds (mapping onto CEXs) will be straightforward, but boasts both decentralized and trustless execution.

This section covers more details around how the protocol powers deUSD on both centralized and decentralized exchanges.