Proposal: Add Collateral USDS Market on ETH Mainnet

New Markets
1

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.

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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

  • WBTC
  • cbBTC
  • 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?

Yes- 0xfF30586cD0F29eD462364C7e81375FC0C71219b1

Relevant Statistics and Links

Website:

Twitter:

https://x.com/SkyEcosystem

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
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