SIP-11 Propose to add dToken pool with liquidity gauge on Swerve

Title: SIP#11 Propose to add dToken pool with liquidity gauge

Summary

dForce proposes to add a dToken pool (dUSDx/dDAI/dUSDC/dUSDT). dToken is a yield aggregator launched by dForce, featured by harvesting the highest underlying yield in the market (USDT 5.41% APY, USDC 4.6% APY, DAI 7.3% APY, as of 20 Sep), as well as gas optimization through a set of strategies that is anticipated to save at least 60% of gas consumption associated (compared to direct interactions with underlying lending protocol for asset supply and sale of governance token mined).

dToken is audited by Trail of Bits.

Abstract

dToken is a yield aggregator protocol launched by dForce, aiming to harvest the most attractive risk-adjusted yield across DeFi stacks.

dToken Pool will include all yielding stablecoins supported by dForce, including dUSDx (USDx is a meta-stablecoin backed by a basket of stablecoins), dUSDT, dUSDC, dDAI. Current TLV across dForce network is around $43.3m (ranks at the 17th place globally on DeFi Pulse), with the following breakdowns:

  • USDx $6.3m
  • USDT $9.1m
  • USDC $23.6m
  • DAI $3.1m
  • PAX $0.6m
  • TUSD $0.6m

Depositing supported tokens into dForce Yield Markets (https://markets.dforce.network/), users will receive corresponding dToken on a pro rata basis (i.e. depositing USDT to receive dUSDT). Each dToken represents a pro rata claim of the underlying token plus yields generated and can be redeemed at any time.

Providing liquidity to dToken Pool on Swerve, LPs will also have access to underlying interest (it also automatically mines underlying governance token and converts into stablecoin yields).

Motivation

dToken pool will support USDx, a high-yield meta-stablecoin, as well as dDAI/dUSDC/dUSDT.

dTokens are featured by the highest available and risk-adjusted yield over underlying stableassets (USDT 5.41% APY, USDC 4.6% APY, DAI 7.3% APY, as of 20 Sep).

Presently, pooled capital of dTokens are supplied to Compound to earn yield and will soon add support to more yielding protocols.

All governance token farmed (including COMP) will be automatically converted into underlying stablecoin and added into the underlying yield.

dToken has internal buffer pool to batch transactions, including rebalancing strategy that is anticipated to save at least 60% of gas consumption associated (compared to direct interactions with underlying lending protocol for asset supply and sale of governance token mined).

Specification

As a yield token, dToken improves on two fronts:

  1. It mines governance token and automatically converts into underlying tokens with much higher underlying yield;

  2. Gas optimized (saving at least 60%) by having an internal pool for batching deposit and withdrawal and rebalancing;

For

  • dToken has the best underlying yields across DeFi stacks;

  • Provides yield from harvesting governance token. dToken is the only yield token in the market that automatically harvests underlying governance token (it mines COMP and sells into underling stablecoin yield automatically)

  • Gas optimized by having an internal pool for batching deposit, withdrawals and rebalancing.

  • dForce has strong market validation, with over $43.3m TLV (as of 20 Sep). It currently ranks at the 17th place globally on DeFi Pulse.

Against

  • It’s possible to dilute SWRV incentive for other pools.
  • For
  • Against

0 voters