Summary
It is proposed to implement a 0.1% fee to facilitate swaps from supported stablecoins (i.e., USDC, USDT, DAI) to USX through the Liquid Stability Reserve (LSR) module. Minting USX from supported stablecoins through LSR will continue to be free.
It is also proposed to remove USDC.e from the stable collateral portfolio supported on the LSR module.
Background
dForce DAO approved the implementation of the Liquid Stability Reserve (LSR) module through DIP027 in July 2022. This module was introduced to efficiently defend the dollar peg for USX, driven by market arbitrage.
Motivation
The LSR module serves as a cost-free trading hub for stablecoins, without any slippage concerns. To date, dForce Swap (LSR module) has realized $264 million in accumulated trading volume across all supported networks.
Implementing a small fee for selling USX for other stablecoins will help:
- Enhance USX’s dollar peg.
- Further grow the market cap of USX.
- Generate additional protocol revenue for dForce.
Specification
- Implement a 0.1% fee to facilitate swaps from USX to supported stablecoins (i.e., USDC, USDT, DAI) through the Liquid Stability Reserve (LSR) module.
| Current | Proposed | |
|---|---|---|
| Swap other stablecoin for USX | Free | Free |
| Swap USX for other stablecoin | Free | 0.1% |
- Remove USDC.e from the stable collateral portfolio supported on the LSR module.