DIP024 – New Vault for LP Tokens

A proposal to launch a new Vault that supports USX paired LP tokens.

dForce Vault was launched to onboard a variety of assets as collaterals, allowing USX to be minted against isolated collateral assets with a completely different risk model.
Vaults can be customized to support different collateral assets in isolation. We thereby propose to support several liquidity pair LP tokens as collateral to mint USX and improve capital efficiency.

Vaults to support USX stablecoin pair LP token on a number of DEXes, allowing USX LP token to be used as collateral to mint USX to further improve capital efficiency.
This is beneficial to both LPs and the protocol. For LPs, it can achieve up to 20x leverage over USX stablecoin pairs which will significantly improve capital efficiency. For the protocol, more liquidity will drive demand for USX in the open market and reduce liquidity subsidies.

Set up a Vault for the following LP tokens as collateral to mint USX, with recommended parameters as below:

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Hi, what is the difference between Interest and Upfront Fee?

Interest rate is a APY which accrues over time. Upfront fee is a one-off fee charged upon each loan origination.

Okay, I see, thanks!

support, great way to improve liquidity efficiency