💵Value-Backed USD (VBUSD)
VBUSD is an all-new, fully decentralized stablecoin, offering Ethereum liquid staking and GMX funding fee yield on USD-denominated deposits!
Value-Backed USD (VBUSD): the first delta-neutral, fully decentralized stablecoin with Embedded Yield!
The VBUSD contracts will be deployed on Arbitrum One soon. The Initial Raise will be conducted before deployment! If interested, please get in touch via our Contact page.
VBUSD's stablecoin collateral initially consists of half wstETH and half 1x ETH short on GMX:
The short position is reinitialized when necessary to avoid liquidation
The value of the collateral stays the same with ETH price movement if reinitialization is done
The protocol should earn a positive income on both parts of the collateral holdings:
The wstETH earns income from Lido Ethereum liquid staking
The 1x ETH short should earn Funding Rate Fees on GMX (which are usually positive for shorts)
To prevent any shortfall, the protocol has a Sinking Fund and other Stabilization Mechanisms:
The Sinking Fund, seeded by the Initial Raise, is the first defense against decollateralization
The protocol has 4 other stabilization mechanisms to ensure that VBUSD remains fully backed
The protocol also issues a proprietary token, GoVBUSD, that handles governance and yield:
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:
Protocol income from Ethereum liquid staking and GMX funding fees accrues via wVBUSD
GovBUSD token yield on wVBUSD liquidity deposits
Users also have other yield options:
Deposit single wVBUSD tokens in the wVBUSD Safety Pool to earn GoVBUSD
Deposit single GoVBUSD tokens in the GoVBUSD Safety Pool to earn GoVBUSD
A Fully Decentralized Stablecoin
VBUSD is based on Arthur Hayes' NakaDollar Concept, and it uses some of the same core ideas, but VBUSD also has several differences 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 Stablecoin Design for further discussion.)
Welcome to Value-Backed USD (VBUSD)!
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