Add Collateral deUSD & sdeUSD (staked) on USDC/USDS/USDT on Mainnet

Proposals
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Introduction

Elixir is a high-throughput network powering exchange-based use cases, acting as the primary source of orderbook liquidity on six exchanges and powering deUSD – DeFi’s native yield-bearing dollar.

deUSD serves as the rails for institutional assets to access DeFi. Used exclusively by Securitize, deUSD is the default currency bringing on-chain composability for BlackRock, Hamilton Lane, and others. deUSD is natively yield bearing, earning from a mixture of treasuries and funding yield, and will serve as preferred collateral for orderbook exchanges.

deUSD also is the backing asset for ecosystem-native stablecoins and related products including Sei Network’s native stablecoin (fastUSD) and Reya Network’s stablecoin liquidity vault. Other upcoming deUSD backing additions will include Movement’s moveUSD (100% wrapped sdeUSD), and Plume’s stable asset vault.

Type: Collateral deployment

Authors: Philip Forte, Cole Petersen

Motivation

Elixir’s deUSD has garnered support from both retail and institutional investors, with ~$100M of onchain liquidity and $220M+ of TVL just months after launching. Institutions have expressed significant interest in adding both deUSD and its yield-bearing staked version (sdeUSD) to the lend/borrow markets on Compound - we estimate that more than $30M in deUSD from institutional holders would be deposited within the first week.

Staked deUSD’s native yield ranges weekly from 10% to 30%+ APY (not including additional Elixir potion incentives) – making this an attractive market for Compound users.

Important Links

Next Steps

We invite the community to give their feedback and recommendations for the asset.

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I generally support adding things as long as they have been audited by multiple parties and the owners (and senior staff) KYC with compound so that information can be posted publicly online should they ever rug.

1 Like
3

Agreed. As mentioned we’ve undergone multiple audits (docs.elixir.xyz/audit) and are fine undergoing KYC. Our team is based in New York City and doxxed. We’ve also completed 4 institutional fundraising rounds for Elixir Labs (all involving team DD processes).

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[Chainrisk] deUSD and sdeUSD Market Analysis

Chainrisk herein provides a transparent insight into the current market performance of deUSD and sdeUSD to be listed as collateral assets on Compound.

deUSD Analysis

Market Data:

All data given below are as per 23th December, 2024

About:

deUSD is a fully collateralized, yield-bearing synthetic dollar powered by the Elixir Network.

Market Cap: $235.8 Million

At $235.8 Million, the market cap indicates a moderate level of investor interest and market presence for deUSD.

24h Volume: $12.3 Million

The 24-hour trading volume of $12.3 Million suggests healthy trading activity, indicating that deUSD is actively traded among investors.

Circulating Supply: 235.8 Million deUSD

The circulating supply of 235.8 Million deUSD tokens reflects the total number of tokens currently available for trading, calculated as the total coins created minus any coins that have been burned.

Fully Diluted Value: $235.8 M

The FDV of $235.8 M provides insight into the potential future valuation of deUSD if all tokens were to be issued.

Current Rankings

  • CoinMarketCap: 346
  • Coingecko: 326

Volatility Analysis

Trading Volume to Market Capitalization Ratio

A trading volume to market capitalization ratio of 8.77% indicates a good level of liquidity, making it easier to buy or sell the cryptocurrency close to its true value on exchanges.

Historical Volatility Performance

The highest price of deUSD was $1.02 and the lowest price of deUSD was $**0.9782.**The historical price data includes:

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Historical Price:
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Historical Market Cap:
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Liquidity Analysis

Token On-Chain Liquidity

The market capitalization of deUSD over the last 24 hours was approximately $235.8 million, while the average daily trading volume stood at around $12.3 million across decentralized exchanges. Although the market cap is relatively modest, it is considered appropriate for listing. The trading volumes is reasonable, given the asset’s market cap and risks can be further mitigated through suitable recommendations for asset risk parameters.

Slippage

The DefiLlama slippage estimator (Token Liquidity) tool shows that a deUSD-> ETH trade of $10M (10,000,000 deUSD) over Odos will produce around 1.08% trade slippage in deUSD.

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Supported CEXes & DEXes:

CEXes:

No Supported CEX.

DEXes:

The deUSD token is actively traded across a variety of decentralized exchanges (DEX), including Curve, Uniswap PancakeSwap.

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sdeUSD Analysis

Market Data:

All data given below are as per 23rd December, 2024

About:

Staked deUSD (sdeUSD) is the staked, yield-bearing version of deUSD.

Market Cap: $152.6 Million

At $152.6 Million, the market cap indicates a moderate level of investor interest and market presence for deUSD.

24h Volume: $14.9K

The 24-hour trading volume of $14.9K indicates minimal trading activity, suggesting that deUSD is not actively traded among investors, primarily because a significant portion of the tokens is staked, resulting in minimal trading.

Circulating Supply: 152,154,298 sdeUSD

The circulating supply of 152,154,298 Million sdeUSD tokens reflects the total number of tokens currently available for trading, calculated as the total coins created minus any coins that have been burned.

Fully Diluted Value: $152.6 Million

The fully diluted valuation (FDV) of $152.6 million provides a glimpse into the potential market capitalization of sdeUSD, assuming all tokens are issued. With no limit on total supply, this figure represents the valuation derived from the current circulating supply of tokens.

Current Rankings

  • Coingecko: 436

Volatility Analysis

Historical Volatility Performance

The highest price of sdeUSD was $1.13 and the lowest price of deUSD was $**0.9452.**The historical price data includes:

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Historical Redemption Rate:

The current redemption rate for staked Elixir deUSD to Elixir deUSD stands at 1.01725227. The graph illustrates the historical redemption rate, showing a consistent upward trend.

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Historical Price:
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Historical Market Cap:
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Liquidity Analysis

Token On-Chain Liquidity

The market capitalization of deUSD over the past 24 hours was approximately $152.6 million, while the average daily trading volume was around $14.9K across decentralized exchanges. The market cap is relatively modest, making it suitable for listing. However, the trading volume is notably low, primarily because a significant portion of the tokens is staked, resulting in fewer tokens are for traded by users.

Slippage

sdeUSD can be redeemed for deUSD at the established redemption rate, after which deUSD can be swapped for other tokens. However, directly swapping sdeUSD for tokens like ETH can result in significant slippage. For instance, swapping just 1,000 sdeUSD directly for ETH incurs a slippage of 18%.

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Supported CEXes & DEXes:

CEXes:

No Supported CEX.

DEXes:

The sdeUSD token is actively traded across Decentralized exchange like BalancerV2 and Uniswapv3.

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Note: Chainrisk recommends to observe the performance of the asset for a few more months before taking the decision to list sdeUSD as a collateral asset on compound, major reasons being low trade volume and high slippage on swaps.

If the community shows significant interest in lisiting deUSD, Chainrisk will move forward with providing parameter recommendations on the same.

1 Like
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I’d support a trial period for 3-6 months with safer settings and then settings can be adjusted to more mainstream stablecoin ones for deUSD and for sdeUSD I’d support listing it if Elixir can increase liquidity of it’s staked token or (if its possible) COMP can exchange it for deUSD when it’s liquidated.

3 Likes