Value-Backed USD (VBUSD)
Last updated
Last updated
The value of the collateral stays the same with ETH price movement if reinitialization is done
Governance may choose between trading platforms, handle distribution of earnings, etc.
Users can earn GoVBUSD by depositing wVBUSD liquidity or single wVBUSD or GoVBUSD
Therefore, VBUSD users can earn two forms of yield simultaneously:
GovBUSD token yield on wVBUSD liquidity deposits
Welcome to Value-Backed USD (VBUSD)!
The VBUSD contracts will be deployed on Arbitrum One soon. The will be conducted before deployment! If interested, please get in touch via our page.
VBUSD's initially consists of half wstETH and half 1x ETH short on GMX:
The short position is when necessary to avoid liquidation
The protocol should earn a on both parts of the collateral holdings:
The wstETH earns income from Ethereum liquid staking
The 1x ETH short should earn Funding Rate Fees on GMX (which are usually )
To prevent any shortfall, the protocol has a and other :
The Sinking Fund, seeded by the , is the first defense against decollateralization
The protocol has 4 other to ensure that VBUSD remains fully backed
The protocol also issues a proprietary token, , that handles governance and yield:
Protocol income from Ethereum liquid staking and GMX funding fees accrues via
Users also have other :
Deposit single wVBUSD tokens in the to earn GoVBUSD
Deposit single GoVBUSD tokens in the to earn GoVBUSD
VBUSD is based on Arthur Hayes' , and it uses some of the same core ideas, but VBUSD also has several from the NakaDollar Concept. For example, VBUSD has embedded yield, whereas the NakaDollar proposal does not, and VBUSD runs completely on the blockchain, with no centralized custody of user funds, whereas NakaDollar's collateral is proposed to be hosted on centralized perpetual exchanges. (See for further discussion.)