Summary
StableLab proposes the addition of a USDS market to Compound V3 on Ethereum Mainnet.
Project and Token Description
USDS is an upgraded version of the DAI token. Upgrading is optional. It is an ERC-20 token with permit functionality and EIP-1271 signature validation. The USDS token also enables two-way conversions between DAI and USDS tokens, using the mint and burn functions of both tokens. The conversion rate of the stablecoin is 1 DAI to 1 USDS. USDS has the added ability to earn token rewards and to access the Savings Rate.
Motivation & Benefits to Compound Community
Currently, Sky Savings Rate is at 6.25% while for Compound Finance’s Ethereum based markets, NetEarn APR for stablecoins are hovering at 3% to 5%, which makes Compound less competitive especially for users who are seeking to supply for rewards.
However, this issue can be resolved by Compound listing USDS and integrating Sky Savings Rate, which was already previously shown to be feasible when Compound integrated DSR (Dai Savings Rate), which allowed its users to enjoy Earn APR higher than DSR.
Sky Protocol has an extensive history of collaborating with DeFi protocols. Therefore, we believe that this is the opportunity for both USDS and Compound to grow even further.
Point of Contact:
Proposed Collateral
We propose adding the following asset as collaterals for the market
- ETH (Ether)
- wstETH (Lido Wrapped Staked ETH)
- COMP (Compound)
- Chainlink (LINK)
- Uniswap (UNI)
We invite the community to suggest and give inputs for any other collateral assets.
Price Feed Behavior
Is the price feed supported by ChainLink? If not, what entity is responsible for posting price updates? List names and addresses which may update the price feed?
No. We will use the official USDS price feed from Sky’s Oracle protocol Chronicle. Chronicle is a secure and decentralized Oracle protocol that has secured over $20B in assets for MakerDAO and its ecosystem since 2017. We believe in resilience in Oracle diversity, and would have Chronicle onboarding as part of USDS onboarding for Compound.
Contract Address: 0x74661a9ea74fD04975c6eBc6B155Abf8f885636c
List of Validators for Chronicle
MakerDAO
Validator Address: 0xa580BBCB1Cee2BCec4De2Ea870D20a12A964819e
ETHGlobal
Validator Address:0xcfC62b2269521e3212Ce1b6670caE6F0e34E8bF3
Nethermind
Validator Address:0x91242198eD62F9255F2048935D6AFb0C2302D147
Etherscan
Validator Address:0x71eCFF5261bAA115dcB1D9335c88678324b8A987
Infura
Validator Address: 0x8ff6a38A1CD6a42cAac45F08eB0c802253f68dfD
dYdX
Validator Address: 0x75ef8432566A79C86BBF207A47df3963B8Cf0753
MyCrypto
Validator Address: 0x3cb645a8f10fb7b0721eabae958f77a878441cb9
0x
Validator Address: 0xD27Fa2361bC2CfB9A591fb289244C538E190684B
Gnosis
Validator Address:0x60da93D9903cb7d3eD450D4F81D402f7C4F71dd9
Mantle
Validator Address: 0xFa6eb665e067759ADdE03a8E6bD259adBd1D70c9
DeFi Saver
Validator Address:0xd72BA9402E9f3Ff01959D6c841DDD13615FFff42
Euler
Validator Address:0x1DCB8CcC022938e102814F1A299C7ae48A8BAAf6
Chronicle Labs
Validator Address:0x950d6400238Cf4AF4f55020D61c201E905631356
Gitcoin
Validator Address:0x77EB6CF8d732fe4D92c427fCdd83142DB3B742f7
0xDA1d2961Da837891f43235FddF66BAD26f41368b
Validator Address:0xDA1d2961Da837891f43235FddF66BAD26f41368b
0xA8EB82456ed9bAE55841529888cDE9152468635A
Validator Address:0xA8EB82456ed9bAE55841529888cDE9152468635A
0xE6367a7Da2b20ecB94A25Ef06F3b551baB2682e6
Validator Address:0xE6367a7Da2b20ecB94A25Ef06F3b551baB2682e6
0x4b0E327C08e23dD08cb87Ec994915a5375619aa2
Validator Address:0x4b0E327C08e23dD08cb87Ec994915a5375619aa2
0xaC8519b3495d8A3E3E44c041521cF7aC3f8F63B3
Validator Address:0xaC8519b3495d8A3E3E44c041521cF7aC3f8F63B3
0x16655369Eb59F3e1cAFBCfAC6D3Dd4001328f747
Validator Address: 0x16655369Eb59F3e1cAFBCfAC6D3Dd4001328f747
0xFbaF3a7eB4Ec2962bd1847687E56aAEE855F5D00
Validator Address: 0xFbaF3a7eB4Ec2962bd1847687E56aAEE855F5D00
0x8aFBD9c3D794eD8DF903b3468f4c4Ea85be953FB
Validator Address: 0x8aFBD9c3D794eD8DF903b3468f4c4Ea85be953FB
0x8de9c5F1AC1D4d02bbfC25fD178f5DAA4D5B26dC
Validator Address: 0x8de9c5F1AC1D4d02bbfC25fD178f5DAA4D5B26dC
0xd94BBe83b4a68940839cD151478852d16B3eF891
Validator Address: 0xd94BBe83b4a68940839cD151478852d16B3eF891
How often will price updates be posted?
1 hour updates
At what price difference threshold will price updates be posted?
0.5%
Can the AggregatorV3Interface functions for this price feed ever revert when called?
No
Does the bytecode of the custom price feed match an audited version?
Yes
Relevant Statistics and Links
Website:
Twitter:
CoinMarketCap:
CoinGecko:
MarketCap:
5.4 billion USD (DAI and USDS combined) https://info.sky.money/
Contract address:
0xdC035D45d973E3EC169d2276DDab16f1e407384F
Official Docs:
Platform:
USDS is built on Ethereum, as an ERC-20 token
The smart contract code for USDS token:
The smart contract code can be found in the GitHub repository for MakerDAO
A security audit report by a third-party security firm:
The audit reports can be accessed here
Next Steps
Adding USDS as a market to Compound V3 on Ethereum would offer users a decentralized and stable asset with unique yield opportunities through the Sky ecosystem. By supporting USDS, Compound would further diversify its offerings, attract new users, and enhance continued collaboration with the Sky ecosystem.
We invite the community to consider this application for listing the USDS market and welcome suggestions in this direction.
Community Check
The community should review the following items before approving a new asset.
- Veracity of the info provided.
- Correct configuration of any new contracts (oracle, custom price feeds, asset).
- Documentation quality.
- Favorable results in the execution of the token test suite or integration simulations.
Additionally, we look forward to the community to suggest
- Collateral Factor
- Reserve Factor
- Borrowing Limit