The Elixir team has launched the "fully decentralized synthetic dollar" deUSD as a competitor to Ethena Labs' USDe. This is what The Block writes about.
deUSD is focused on providing liquidity for DEX based on the order book.
Working in the DeFi ecosystem, USDe relies on interaction with centralized exchanges and custodians.
Like the stablecoin from Etheba Labs, deUSD is also fully secured. It is created using stETH as collateral for Ethereum shorts in a delta-neutral position.
deUSD stake holders can receive additional returns in excess of the basic one in the form of exchange incentives for providing liquidity, the project says.
The team claims to provide a "truly decentralized" on-chain and non-custodial alternative to USDe with verifiable proof of execution, open source, without relying on CEX.
According to the developers, deUSD, compared to USDe, also has the ability to maintain stability during periods of extreme negative financing rates.
"The network has been subjected to stress tests for the past two years. deUSD [...] eliminated dependence on market trends related to the basis and unstable sources of income," assured Philip Forte, founder and CEO of Elixir Labs.
According to the developers, they have an agreement to raise $1 billion for the stablecoin. The asset will support a number of DeFi protocols.
Among them is Pendle, which will create a market for Elixir's Apothecary initiative. The latter is a points-based system to help users track their contributions to a project.
Since the launch of the program in March, users have blocked over $300 million in Ethereum, according to the developers.
The assets provided give the right to issue a cross-chain liquidity provider token with 1:1 collateral in ETH, earning Potions points.
The elxETH issued in this way can be used as collateral on DEX based on the order book like Vertex, Bluefin, RabbitX, dYdX, ApeX, Ordly Network, SynFutures and others.
Pendle tokenizes the Potion program by dividing the points into two different markets: one for users who want to buy and sell Potion directly, and the other for those who are solely interested in income from the rewards generated by the program from Ethereum staking.
With the launch of deUSD, Apothecary depositors can choose either to mine stablecoin using blocked ETH as soon as DEX support is available, or withdraw their coins. According to the team, the withdrawal or conversion of assets is possible at any time.
Ahead of the mainnet launch in September, Elixir was valued at $800 million.
In March, the startup closed an $8 million Series B funding round. It was led by Mysten Labs and Arthur Hayes' Maelstrom.
Recall that the capitalization of Ethena Labs' USDe surpassed the $3 billion mark in just four months after launch — faster than all competitors.
CryptoQuant recommended that USDe holders keep an eye on this parameter. According to calculations, in conditions of negative financing rates, the reserve fund will be able to be maintained if the capitalization of the "synthetic dollar" does not exceed $ 3 billion.
Earlier, experts analyzed the vulnerability of the asset in extreme market fluctuations.