This proposal is seeking support from the dForce community to activate LSR and enable 1:1 swap between USX and USDC, USDT on Linea.
The LSR (Liquid Stability Reserve) module allows users to use supported stablecoins as collaterals to mint USX (or redeem USX for supported stablecoins) at 1:1 rate. The launch of LSR was approved through DIP027.
LSR is an improved version of Maker’s PSM (Peg Stability Module). All stablecoins collected from LSR will be deposited into dForce Lending to earn yield, unlocking a new revenue stream for dForce Treasury.
Users only need to pay gas fee to facilitate the swap - a much more efficient approach to get USX compared to lending model which requires collateralized assets of greater value to secure the loan. You can then implement different strategies to further improve your DeFi yields.
‘Minting Cap’ for proposed stable reserve assets are:
- USDT - 2M
- USDC - 2M