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 12.1% APY, USDC 6.1% APY, DAI 12.1% APY, as of 31 Aug), 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).
Currently, dToken pool participants can farm DF token by staking through dForce Staking Portal (https://staking.dforce.network/) (mining APY 109% for USDx/USDC on Uniswap), by adding a dToken pool on Curve, LPs could provide liquidity and have the benefit of mining both DF and CRV, (i.e with projected combined yield of 170%), which is a great additional yield incentive to LPs on Curve.
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 $59.8m (ranks at the 13th place globally on DeFi Pulse), with the following breakdowns:
- USDx $6.4m
- USDT $7.4m
- USDC $31.6m
- DAI $13.2m
- 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 Curve, 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 12.1% APY, USDC 6.1% APY, DAI 12.1% APY, as of 31 Aug).
- 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 pool participants can farm DF token through dForce Staking Portal, and can also mine CRV if the proposal is supported.
- 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).
- Leverage the strong visibility and dForce’s outreach to top-ranked partners and DeFi communities in China (exchanges, wallets, mining pools, asset mgmt., etc) to onboard more users from the East, as well as helping Curve promote its visibility in China.
Specification:
As a yield token, dToken improves on three fronts:
- It mines governance token and automatically converts into underlying tokens with much higher underlying yield;
- Gas optimized (saving at least 60%) by having an internal pool for batching deposit and withdrawal and rebalancing;
- LP can earn CRV, as well as DF rewards (current APY of 109%) by staking LP tokens received.
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.
- Serves as high-yield alternative to harvest attractive returns for LPs. Participants can farm DF and CRV simultaneously, on top of underlying yield and trading fees.
- dForce has strong market validation, with over $59.8m TLV (as of 31 Aug). It currently ranks at the 13th place globally on DeFi Pulse, and the 16th on DeBank.
- An effective approach to onboard new users from the East and improve Curve’s visibility in the East.
Against:
It’s possible to dilute CRV incentive for other pools.
Vote below:
https://signal.curve.fi/#/curve/proposal/QmY3kCrZSrohRJcXimD8V6FfSJgafLubjZyPyTDwUrDEdX