SIP-6 Adding new Stablecoin Pool

Dear all,

I would suggest for adding new pool for more stablecoins to on-board to make the swerve ecosystem more diversified and more stable to reduce systemic risk.

Here is my proposal to build a new pool as:

USDC, USDT, HUSD, sUSD
or
USDC ,USDT, HUSD,mUSD

I believe some community members haven’t heard of HUSD, but it is the 7th stablecoin interms of market cap.

My idea is by adding more stablecoins , Swerve will attract more different users, traders around the world. And may connect the community from west to east. Openess and fairness , I believe that’s the spirit of open finance and DeFi.

Basic Info

HUSD is issued by Stable Universal limited, a company registered on BVI. HUSD can be traded on Huobi Global, HBTC, HOO, Hotbit and some other CEXs. For DeFi, now Tokenon and Kyber Network has supported HUSD. The MarkerDAO community is voting for on-borading HUSD as a collectral as well.

Of course, I think it’s open to discuss about the Pros and Cons of this proposal and I would like to share my idea with all. Thanks.

Data

Stablecoin Ranking: #7
Circulating Marketcap: 146 million Accumulated issuance: 2 billion
Trading Volume (24 hours): $ 20 million

Appendix

Official Website: https://www.stcoins.com/
Data Center:https://www.stcoins.com/data
Skew:https://analytics.skew.com/dashboard/stable-coins
MakerDAO Application:https://forum.makerdao.com/t/husd-mip6-collateral-onboarding-application/2991/6

Options:

  • YES
  • NO
  • Maybe Later

(I think before we start a formal voting, we can discuss more)

No to Huobi. It’s a shady exchange and there’s a lot of risk to having a pool with one of its assets, including:

  1. Huobi’s keys get compromised and the pool gets drained
  2. A trillion HUSD get printed and the pool gets drained
  3. Regulatory risk for Swerve as a whole from having Huobi assets on it

And I’m sure there are more.

Right now, there’s a big uproar in the Curve community over the Curve team backdoor adding HBTC (Huobi BTC) as a pool. Some people suspect Huobi paid off the team to do it.

I’d be fine with mUSD or sUSD. But not HUSD.

3 Likes

While adding more stablecoins is great to attract different users, we still need to have enough liquidity. Most of LPs are here for good APY, if we divide it to more pools, it will be lower than on Curve. So might be early for new pools till the platform grows. “Start small, grow big”

1 Like

this is a hard no for me. I’d rather add sUSD

1 Like

I think it is better to keep our focus on one pool and do not spread ourselves too thin. Although, I am willing to consider adding sUSD after a two week period. As per HUSD I would suggest making a high-risk USDT/USDC/HUSD/BUSD pool just for the sake of partnerships with these two exchanges.

5 Likes

Agree, susd would be the first to add, its a solid asset and is only currently traded vs other stable coins on curve

3 Likes

yes, so we can propose a pool including sUSD and hUSD at the same time.

I agree with that. sUSD seems fine for main pool + additional risky pool would be good to attract new users. mUSD doesn’t really make sense because it aggregates 4 stablecoins inside it already, also has poor utility by initial idea.

1 Like

that’s a cool idea, USDT/USDC/HUSD/BUSD would be a nice try

we should view the addition of more assets like a growth strategy. Synthetix has one of the best communities in crypto and adding support for sUSD will show that we on-board with them

2 Likes

Fantastic idea! it would attract more support from their issuers and more attention from the Asia Pacific.

1 Like

According to my research, from the data on the chain, HUSD traders are mainly institutional traders. Such high-stakes users are actually the target users of Swerve, and I think it is worth it. . Similarly, BUSD has a similar situation.

1 Like

I really like these two ideas:

  • Add support for sUSD in general
  • Add a separate high-risk pool with HUSD/BUSD
1 Like

can live with husd/busd if they are off on their own. Not in love with it but can see the value if there’s demand.

would like an sUSD pool eventually. But @chickenpie347 is right about this launching gauge weight wars early on in the process which is detrimental to everyone.

1 Like

BUSD and HUSD are important for institutional traders , since they have to follow compliance and regulation. As a U.S. dollar gateway for giants like Fidelity and hedge funds, USDC, HUSD ,BUSD is valuable. DeFi also need more money and more liquidity in terms of fiat on and off ramp.

So let’s start a vote on high-risk and high-liquidity pool with USDT/USDC/BUSD/HUSD!

1 Like

I think if the first pool we add is a huobi related pool this looks bad optically. Will make swerve an easy target - i.e “look huobi paid those guys off too AND they’re just copycats AND they’re anonymous”. The FUD writes itself honestly.

I would say strong NO to this high risk pool as the first new pool. Let’s explore sUSD and other options (eth/seth would be rad), definitely NOT anything huobi related because it will 100% be a PR clusterfuck.

1 Like

Gemini GUSD will be a better option. They are by far more in compliance to proper audits within US jurisdiction. There is no other ramp in USA for USD to enter the crypto space with this type of credentials. Institutional investors in US are going to enter the crypto space through regulated ramps like Gemini.

Maybe they dont have the volume now to balance the pool but in a near future they will as Institutional investors enter the space.

LOL … GUSD is like as :poop:

GUSD does not have any liquidity :sneezing_face: