Summary:
This proposal would see the addition of the [aUSD, [2Pool]] Metapool to the Curve on FTM.
Abstract:
Protocol: Aquarius is a fork of the Liquity protocol in the Fantom network. Aquarius has the features and benefits consistent with the Liquity protocol. In addition, based on the concept of Liquity, we have designed a new tokenomics to adapt to the fantom network.
aUSD is a fully decentralized stablecoin of Aquarius backed by FTM as collateral. It is generated when users open a Trove in the Aquarius system and borrow against their FTM (akin to MakerDAO). All Troves must maintain a minimum collateral ratio of 110%, ensuring that aUSD is sufficiently backed by collateral.
Motivation:
After launching, Aquarius has attracted an >$5M TVL, while aUSD has grown to a supply of >2.80M. So far, liquidity has been increasing on the aUSD:FTM Sushiswap pair, but we expect that users would be especially interested in the aUSD:2Pool, yielding another profitable opportunity for Curve users and increased revenue for veCRV holders.
With demand for aUSD increasing, the ability for user’s to acquire it directly (without eating too much in fees) will become important — as mentioned by some Curve users. Since the pool is already deployed and seeded with initial liquidity, it seems like an ideal time to encourage its use while Aquarius continues to grow.
Specification:
â—Ź aUSD is a fully decentralized stablecoin backed by FTM as collateral.
● aUSD maintains its peg through direct arbitrage opportunities. aUSD’s price floor of $1.00 is protected through a redemption mechanism. At any time, an aUSD holder can redeem aUSD against the system such that 1 aUSD = $1 of FTM. When aUSD is redeemed, it is used to pay off the debt of the riskiest Troves in the system in return for their collateral. When aUSD <$1, this is a profitable opportunity. Its price ceiling is protected by low collateral requirements, since a borrower can take out a loan at the 110% minimum and sell their aUSD on the market.
â—Ź we are being audited now.
aUSD: 0x41e3df7f716ab5af28c1497b354d79342923196a
Repo: AquariusFi (github.com)
