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- The Principal Engineer at Ethereum’s scaling solution Matic Network, Arpit Agarwal, introduced an exclusive stablecoin DefiDollar (DUSD) today.
- As per Principal Engineer At Ethereum, Arpit, it is an index of stablecoins that utilizes DefiDollar primitives to stay near the dollar mark and subsidize the collateralization ratio.
- Besides this, DefiDollar is live on the Kovan testnet.
The Principal Software Engineer at Ethereum’s Matic Network, Arpit Agarwal, introduced an exclusive stablecoin DefiDollar (DUSD) today.
Existing stablecoins back DUSD
As per Principal Engineer At Ethereum, Arpit, it is an index of stablecoins that utilizes Defi primitives to stay near the dollar mark and subsidize the collateralization ratio though existing stable coins back the DefiDollar (DUSD).
https://twitter.com/atvanguard/status/1264563268661792768
Recently, there has been an argument about the Ethereum-based Stablecoin DAI moving from its peg. The centralized, stable coins frequently trade above or below the peg.
However, if DUSD is trading above the peg, there will be an instant profit, as the protocol permits the user to generate a DUSD by locking $1 worth of other stablecoins. This will make the Arbitrageurs mint more DefiDollars and sell them in markets. Moreover, this results in the price to get down.
On the other hand, if DUSD is trading below peg, there will be instant profit as the protocol allows exchanging one DUSD for $1 worth of other Stablecoins. Here, the Arbitrageurs will purchase the coins and redeem them, causing the price to get up.
DefiDollar is live on Kovan testnet
Moving towards the key benefits of DefiDollar stable coins include Stablecoin hedging. DUSD is a place for AMM-based effective Stablecoin swaps. Additionally, it requires less governance, captures the brief upticks in yield of a specific underlying asset, and risk diversification.
Besides this, DefiDollar is live on the Kovan testnet. It currently supports TUSD, DAI, and MKR Stablecoins to mint DUSD.
