Thoughts on Expanding USX/EUX Use Cases

Native stablecoins (USX, EUX) are the most critical part of our protocol matrix, we have seen great success with USX/EUX minting growing to $18m, this is a good start.

The current primary use cases for USX/EUX are 1) liquidity mining in dFoce Lending and LP pairs across different dex; 2) liquidity conduit between dForce and other eco projects (i.e Liqee).

Our native stablecoins are designed to be highly flexible and scalable, I have put a bit of thinking on expanding into more use cases and putting forward for more discussion here, at higher level:

1. Increase USX minting limit to Liqee (there is great traction with USX as liquidity bridge between Liqee and dForce and it drove tremendous borrowing volume to dForce) but it is currently handicapped by $3m limit for Ethereum and BSC respectively. I suggest to increase it to 10m USX for Ethereum and BSC respectively, at the same time to increase its interest rate from 0% to 1.5%.

2. Yield token and Stablecoin pool. i.e allowing to use Curve’s 3pool tokens, stablecoin pool, to directly mint USX and EUX. I suggest to do it in a separate pool because we need different sets of risk parameters for this pool, i.e a) higher LTV ratios, so higher cap efficiency; b ) to ringfence risk in a separate pool, so to contain its impact to our general pool;

3. Permissioned Pool and Real-world asset financing. We are finally about to launch the permissioned and real-world financing module over the next two weeks, this will bring more institutions onboard with uncorrelated real-world yield assets as well as financing into USX.

4. Cross-chain/layer bridge. USX is a natural bridging liquidity asset and it could be used to bridge liquidity across different chains. i.e you could use your USX on Ethereum and bridge it to Arbitrum and deposit into dForce Lending and borrow USC, essentially, you are moving your USDC liquidity from Ethereum to Arbitrum, the same for BTC and ETH; it will be more exciting to have instant bridge from Arbtitrum to Ethereum by using the USX bridge, we are working on this as well. But the first step is to allow interoperability for USX across different layers and chains, starting from Ethereum-Arbitrum bridge. This will greatly expand USX’s usage.

5. USX as multi-collateral bridge for trading and dex. We are looking into creating USX pool on MCDEX, so you could use any assets we supported in our lending pool to mint USX and use that to a) LPing into MCDEX’s USX pool; b) deposit to leverage trade on MCDEX; Basically, USX is a bridge for multi-collateral to trade on MCDEX and on top of that, all your collaterals are earning great yields while depositing. We are also working with other derivative and trading venues (i.e Deri Finance) for similar arrangement.

Expanding USX’s adoption horizontally and vertically will be our focus over the next quarter, I would expect USX minting to increase substantially, so the protocol revenue.