Deploy a "crvUSD-E" backed only by ETH

Summary:

Deploy a version of crvUSD that’s backed only by ETH/wETH.

Abstract:

The deployment will be basically a fork / copy-paste of crvUSD that will only by backed by ETH/wETH, with the promise to never add another markets to it.

Motivation:

Basically a “maxi” approach where the underlying asset is backed only by ETH/wETH in order to compete with other stables like USDC/USDT/DAI. The idea is that we want people to hold crvUSD just like you hold fiat in your wallet and not expose yourself to the underlying risks of multiple markets like: stETH/wBTC etc. where yield is a priority.

Specification:

We already have markets for wETH/ETH on crvUSD, it’ll just need to be redeployed with limitations. The technicality should be that complicated, except from some edits where even the DAO can’t add more markets to said asset (crvUSD-E). I’m not a developer and I can’t talk about the full technicality for the purposal.

For:

Attract stable holders who don’t want to interact with DeFi while still bringing fees to the DAO and competing with other stablecoins. Creation of more pools and markets for the underlying asset. Maxi approach, as it’ll most likely be the one and only stablecoin backed purely by ETH.

Against:

None I can think of.

3 Likes

Hi it is not good to create a new stablecoin due to liquidity fragmentation and peg hold if the project has already chosen a stablecoin

2 Likes

Well the idea never got any traction in the 1st place. And I disagree… regardless of “liquidity fragmentation” maxi approaches are usually well received as they minify risk.

2 Likes

The risks in each pair is isolated anyway?

2 Likes

Not really, there are multiple vectors. What if Frax finance fails?What if stETH fails? What if…

If you have only ETH the risk is minimal.

3 Likes

Well ok. I’d love to see if there are enough people liking this idea

2 Likes

If this is considered, it would be fantastic to do this for specific projects.
If it is possible? YieldNest would love to have a ynETH/ynLSD-backed crvUSD-YN, for example.

2 Likes

Maybe look into RAI (Reflexer)

Good market thinking