dForce Introduces Decentralized Stablecoin sUSX For Earning Yield, Providing Users With Enhanced Liquidity
In Brief
dForce announced the launch of sUSX, a native yield bearing Omni stablecoin that can be minted and withdrawn across various blockchains.
Liquidity network dForce announced that it has launched sUSX, a yield-based decentralized stablecoin.
sUSX functions as a native yield bearing Omni stablecoin that can be minted and withdrawn across various blockchains. This feature allows users to mint sUSX and earn yield directly on supported blockchains, providing its users with complete flexibility and enhancing liquidity.
This stablecoin utilizes decentralized finance (DeFi) mechanisms to generate transparent and sustainable yield. Yields are sourced from various strategies, including protocol fees from lending activities, minting fees from vault operations, LSR (Liquidity Sensitive Rewards), protocol-owned operations (POO), and other revenue streams.
sUSX generates protocol fees that are deposited into a reserve fund, serving as both a safety measure and a yield source. This setup ensures that stablecoin holders can earn interest from lending activities. Additionally, users have the option to lend and mint USX against various cryptocurrency assets, paying a nominal interest fee. These fees are pooled and redistributed to sUSX holders as incentives. When converting USX back to its underlying assets, users incur redemption fees, which contribute to the treasury and are further distributed to USX holders who stake their tokens to earn sUSX, representing another source of yield.
Meanwhile, POOs support market activities within the DeFi ecosystem, generating income for both dForce and USX holders. These activities involve providing liquidity for dForce-supported assets on decentralized exchanges (DEXs), borrowing assets from dForce, and supplying liquidity to other protocols, among other functions.
However, dForce clarified that sUSX is not currently available for minting, and further updates will be released regarding its deployment in the future.
What Is dForce?
dForce is a multi-chain platform focused on developing a range of web3 infrastructure protocols, which encompass standardized decentralized stablecoins, general money markets, yield tokens, RWA tokens, and other solutions. The platform’s goal is to create protocols that enhance liquidity across various ecosystems, including Bitcoin Layer 2 networks, DeFi, and decentralized AI.
USX is structured as an over-collateralized stablecoin with several minting mechanisms like global pool, vault, and LSR. Its value relative to the United States dollar is managed through a hybrid interest approach, which adjusts lending and borrowing rates on various platforms to maintain liquidity in secondary markets. Utilizing the LSR module, USX can be directly exchanged at a one-to-one ratio with other stablecoins supported on the dForce Trade platform.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
