dForce Liquid Stability Reserve Module will be launching. This new module allows users to use supported stablecoins including USDC, BUSD, USDT, DAI, and USDP as collaterals to mint USX (or redeem USX for supported stablecoins) at a 1:1 rate.
USX’s full collateralization will remain intact. It is designed to help USX maintain its dollar peg in a more efficient manner.
All stablecoins collected from LSR will be deposited into lending protocols (with dForce Lending as a start) to earn yield, unlocking a new revenue stream for dForce Treasury. This feature aims to further enhance the flexibility and capital efficiency of USX, i.e., via POO and PDLP which power USX’s liquidity in the secondary market.
LSR will support different assets on different blockchains
- On BSC, BUSD, USDC, and DAI will be supported.
- On Optimism and Polygon, USDC and DAI will be supported.
How to use LSR on dForce?
- Please navigate to the dForce app and make sure you are connected to BSC, Polygon, or Optimism (more networks will be supported soon), and click on ‘Mint’ from the menu to continue.
- Choose the stable asset you’d like to mint USX against (vice versa) from the drag-down list.
- Enter the number of stable assets and you will be able to receive USX at a 1:1 rate. For first-time users, please click on ‘Approve’ and confirm the transaction from your wallet.
- Click on ‘Swap’ and confirm the transaction from your wallet.
- Congratulations! Now you should be able to see newly minted USX in your wallet.
- As a reminder, minting or redeeming USX will be subject to pool liquidity which can be viewed on the same page (same as Curve pool). In the event of a liquidity shortage, you can still buy or sell USX on supported DEXes.
Here are two links readers to look at to further read up on LSR
- DIP027 — Proposal to Launch the LSR (Liquid Stability Reserve) Module for USX
- Proposal to Introduce Liquid Stability Reserve to USX
dForce core developer team is constantly trying to improve its protocols.
dForce is a complete set of decentralized finance protocols covering assets, lending, and trading, serving as DeFi infrastructure in Web3.