💸Stablecoin Design
VBUSD is a delta-neutral stablecoin with collateral initially comprised by 1/2 wstETH and 1/2 1x ETH short. It earns Embedded Yield from both ETH staking and perpetual exchange funding fees.
VBUSD will benefit from the GMX referral scheme! It can cut our fees, and we can receive token airdrops! Stay tuned for our referral code!
VBUSD's design is based on the NakaDollar concept by Arthur Hayes, but it contains some changes and added elements.
Ideas introduced by the NakaDollar Concept and used by VBUSD
Delta-neutral stablecoin reserves: half spot holding and half 1x short initially
Governance Token: The protocol token handles governance and yield incentivization
Sinking Fund: Money that serves as protocol backstop
Initial Raise: A presale intended to raise money for the Sinking Fund
Embedded Funding Fee Yield: Profit is expected to be earned from having short positions
VBUSD's differences from NakaDollar Concept
Embedded Staking Yield: VBUSD earns ETH staking yield; NakaDollar based on yieldless BTC
Decentralization: VBUSD has fully decentralized custody and trading; NakaDollar holds collateral on centralized perpetual exchanges (CEXs)
Permissioning: the public can mint VBUSD, and their gas transactions perform housekeeping operations; NakaDollar allows only a few "Authorized Participants" to mint
Price Oracle: VBUSD uses Chainlink oracles, which use mutiple price sources, to determine the consensus price of ETH, whereas NakaDollar uses a weighted average of member CEXs
The protocol has multiple sources of income, including Embedded Yield!
Protocol Income Sources
Ethereum Staking yield
Funding Fees on GMX (we expect to earn money because longs usually outnumber shorts)
Initial Raise (seeds the Sinking Fund)
The contracts are capable of working with a non-interest-bearing token instead of ETH using a boolean variable flag. Therefore, more stablecoins such as one based on BTC could be created using the same contracts.
This section includes pages on the following pages on VBUSD features:
Minting and RedemptionwVBUSDReinitializationStabilization MechanismsLast updated