Elixir deUSD (DEUSD)
Elixir deUSD, or "decentralized US Dollar," is a synthetic stablecoin developed by the Elixir Network. It is designed to provide stability and liquidity across both decentralized and centralized exchanges. This stablecoin is fully collateralized using assets like stETH and sDAI, which help maintain a delta-neutral position by shorting ETH. The protocol employs funding rate arbitrage within the Ethereum network to mint deUSD, ensuring stability even in challenging environments. Within the Elixir ecosystem, deUSD enhances liquidity in exchanges and offers yield opportunities. Its future vision includes becoming a cross-chain currency integrated into decentralized finance (DeFi) systems. The protocol's initial revenue contributes to the Over Collateralization Fund (OCF), which is composed of sDAI and Tether.
| Ticker | DEUSD |
| Category | Stablecoins |
| Website | https://elixir.xyz |
| @elixir | |
| Telegram | elixir_network |
| Contract Addresses | |
|---|---|
| ethereum | 0x15...38 Copied! |
Key features of deUSD
Decentralization
The Elixir Network supports decentralized execution for deUSD through verifiable proofs, open-source code, and on-chain liquidity. The goal is to enable permissionless minting and redeeming of deUSD, allowing users to interact fully on-chain.
Resilience in negative funding conditions
deUSD maintains stability in negative funding environments by adjusting its collateralization through the Elixir Network. This ensures resilience during adverse conditions.
Collateral use within the Elixir ecosystem
deUSD is accepted as collateral by various orderbook decentralized exchanges (DEXs) within the Elixir ecosystem. This enhances liquidity and contributes to the depth of orderbooks.
Over Collateralization Fund (OCF)
The Over Collateralization Fund (OCF) supports deUSD's resilience, particularly in challenging market conditions. It manages costs related to transitioning to sDAI during negative funding environments, minimizing exposure to negative basis trades. The OCF operates based on predefined health factors and shifts to a defensive mode if needed, converting collateral to sDAI. During positive funding periods, the OCF allows deUSD to capture additional yield, balancing risk and return.
Tokenomics of deUSD
deUSD functions as a synthetic asset primarily backed by stETH and sDAI. These assets help manage positions and provide stable yield through the OCF. Collateralization adjusts dynamically based on the protocol’s health to maintain stability in various funding rate environments. deUSD is integrated with both centralized and decentralized exchanges, where authorized participants like market makers can mint and redeem it in exchange for collateral. Decentralized protocols facilitate trade execution and liquidity provision. The ELX token acts as the governance and utility token for the Elixir Network. Following the mainnet launch, ELX holders gain voting rights on governance decisions, including fee distribution across the network. Validators are required to stake ELX tokens, incentivizing them to secure the network.