This is a proposal to implement sUSX (Saving USX) as a new feature that allows USX holders to earn systemic passive yield in USX.
Background
USX stands as the pioneering decentralized multi-collateral stablecoin that incorporates both the lending model with variable rates and the vault model with fixed rates across various L1/L2 chains.
Users have the flexibility to mint USX by using their assets, which they’ve deposited into dForce Lending, as collateral. Simultaneously, they can continue to accrue interest on these underlying assets.
Meanwhile, users can mint USX through vault with a fixed interest rate against a variety of assets, such as LP tokens, LSD, and more.
Motivation
Currently, USX holders need to supply USX into dForce lending or provide liquidity for USX to earn yield. These yield opportunities are campaign-driven which is difficult to scale (yield drops when liquidity grows).
sUSX (Saving USX) is a systemic native yield token and is poised to be an integral component of USX, allowing users to deposit USX and receive a ‘risk-free’ interest rate determined by dForce governance.
The purpose of sUSX is to onboard global native yield assets to DeFi. sUSX is a tokenized saving certificate of USX, with its yield benchmarking against that of USD Treasury Bill.
This will position USX as one of the US-pegged stablecoins offering sustainable and attractive yield in DeFi, funded primarily by RWA assets and protocol revenue.
We are also implementing a framework to allow easy accessibility across different L1/L2 chains.
sUSX’s interest rate will be determined by dForce DAO through governance, and is thus subject to periodic future adjustments.
Specification
- Standardized yield token format that accumulates interest at a target rate;
- Cross-chain support with native minting capability, offering saving rates across different networks with minimal friction;
- Composability - as a standard ERC token, sUSX can be easily integrated with different DeFi protocols;
- Initial target saving rate is 8%.