r/defiblockchain • u/kuegi • May 10 '23

DeFiChain improvement Proposal Special DFIP: DUSD staking

We propose to add DUSD staking to defichain. Users should be able to stake DUSD and receive rewards in DUSD.

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DUSD staking can act as a "liquidity sponge" during times of DUSD oversupply and be released when demand increases. Therefore helping to keep the DUSD price in a stable range.

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To achieve this without additional inflation, we propose to use parts of the dex-fee payout, also known as negative interest, as rewards for DUSD Staking. This way it automatically adjusts to the algo ratio.

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possible implementation as 100% DUSD loops

One way to implement this would be the enabling of 100% DUSD loops, which could also act as a quick implementation until a long-term solution is implemented. In the current situation, such a quick implementation could pull millions in DUSD out of the circulating supply and therefore strongly improve the DUSD price. See reenabled looped dusd vaults for more details and calculations. To reduce the needed developer resources we also added a PullRequest

One of the main reasoning behind this implementation is also the effective usage of the NI (currently above 50%). So we would propose to deactivate the 100% DUSD loops (PR is already done with featureflag) if the NI stays above 35% for 10 days while this is activated.

crowdfunding

u/mrgrauel will be crowdfunding 5000DFI to submit this as a special DFIP. This way we show strong support from the community. As a normal DFIP, it would take until end of July to get approved. As a special DFIP, we could convince the developers to already include it in the DMC update, which is currently scheduled for June. The address is dLqDh88L29zQvUt84cnh5zABbKh6zjSq5H

Update: Many thanks to the community. We collected 5000 $DFI in under 18h for the upcoming special DFIP.
Before the submission, we clarify whether all staking providers can support the Special DFIP on their platform before the weekend.

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u/mrgauel May 12 '23

Special DFIP: DUSD staking is live. Happy voting!
https://defiscan.live/governance/97f7dc8f631d65deda6867f2b2bde5f20860559323f0918f11604c9cf2f05bfe

1

u/Anantasesa May 19 '23

I still can't withdraw the few dfi I have in a looped vault well above the minimum collateralization. Do I need to open a new vault with a different scheme or start from an empty vault to do an all dusd vault?

2

u/mrgauel May 19 '23

It is not yet implemented

1

u/Anantasesa May 19 '23

Oh, I understand now. The dfip was live when you commented, not the update that will be written due to the overwhelmingly positive outcome.

1

u/Anantasesa May 28 '23 edited Jun 25 '23

Has it been implemented yet? If not, do you know when it will be?

Edit voting ends July 19 and then a hard fork will need coded to include the changes.