0xRafi Profile picture
16 Feb, 21 tweets, 9 min read
1/ $DFD, @defidollar, dusd.finance. This is a project that i've mentioned over the last few days and that I believe is massively undervalued (~$10M market cap) and deserves a lot more attention. Image
2/ @defidollar offers a risk-insured stablecoin layer for DeFi. It does this through $DUSD, a stablecoin backed by an index of stable coins and leveraging on DeFi building blocks to ensure a $1 peg is maintained even if one of the stablecoins in the index loses its peg.
3/ So let’s take it step by step. Supported stable coins (DAI, USDT, USDC, sUSD…) can be posted as collateral to mint $DUSD and are provided as liquidity for yield generating DeFi products (such as @CurveFinance, yearn or $AAVE). And here is where the interesting stuff begins… Image
4/ The yield generated is not shared among all $DUSD holders, but it is used as incentive for users to post $DUSD (and $DFD) as insurance collateral to maintain the $1.00 peg for $DUSD in case any of the underlying stable coins loses its peg.
5/ So users simply holding $DUSD in their wallets will earn no yield but will have the benefit of a stable coin with an extra layer of security against losing its peg, while stakers will earn higher rewards but take higher risks in acting as an insurance layer for the system.
6/ As an example, if a total 10M $DUSD is minted, but only 2M are staked as collateral, these 2M coins will earn the yield generated by the entire pool of $10M in underlying stable coins, giving them a sizeable incentive to take the extra risk.
7/ In practice, @defidollar uses @chainlink oracles to push price updates to their smart contracts and if any of the underlying stablecoins slip from their $1 peg, then the protocol calls onto the staked reserve to guarantee the outstanding $DUSD and bring it back to the $1 mark.
8/ Staked $DUSD and the associated yield revenues (from the underlying DeFi protocols + DefiDollar platform fees) are represented by $ibDUSD tokens (interest bearing DUSD) which are freely transferable, similar to yearn’s y tokens.
9/ So what about $DFD?
$DFD is the governance token used to vote on platform parameters such as the allocation of project revenue and reserves, and $DFD can also be staked to receive a share of the protocol income through $ibDFD while acting as an extra insurance layer for $DUSD
10/ $DFD is currently being distributed to liquidity providers on @BalancerLabs, @SushiSwap, @Uniswap and @CurveFinance, as well as to the $DFD staking pool. Protocol income is shared 50/50 between $ibDUSD and $ibDFD staking pools.
11/ $DFD has a 100M max supply o/w 11.9M in circulation. Team and advisors tokens (23%) are subject to a 2m cliff + 36m linear release, seed investors / early supporters tokens (11%) are released over 24m and 32m respectively, and staking rewards (51.5%) are released over 36m. ImageImage
12/ The core-team includes 3 former MATIC team members and Co-Founder & CEO Arpit Agarwal is the former MATIC technical lead and a former @Google employee. Smart contracts passed multiple audits by @Quantstamp, @peckshield and Monoceros.
13/ Now that the basics are out of the way, let’s get to some of the majorly bullish stuff:
$DUSD lending is already live via cream/yearn, and a dusd3crv pool is also live on Curve. These are major integrations considering the current $10M market cap and 12M $DUSD in circulation.
14/ The team has also just announced @defidollar is working with @BadgerDAO to build interest-bearing badger BTC (ibBTC) which will be backed by Badger sett LP tokens. The ambition here is to build a yUSD equivalent for BTC that would become the default BTC coin on @ethereum.
15/ And another innovative product being developed by the team is OptionsCoin. This will allow the issuance of stable coin loans collateralized by assets + corresponding put option (the right to sell the collateral asset at a certain price before a certain date)
16/ As an example, if ETH is worth $1700 and a user wants to borrow $1500 against it, they will deposit the ETH as collateral + pay for the options premium.
If ETH price goes below $1500 the option is exercised and the loan is liquidated for the exact price of $1500.
17/ This could open the lending market for more illiquid collateral assets (since options settlement is guaranteed on-chain) and also allow for a higher loan percentage compared to collateral, as there is less need for large buffers for liquidation execution.
18/ The team is working with @opyn_ to create $OPETH, a tokenized ETH + Put., so users will be able to borrow DUSD/USDC against $OPETH as collateral. As with the remaining platform fees, the fee revenues from OptionsCoin will flow down to $DUSD and $DFD stakers.
19/ In terms of competition, the closest project to DefiDollar is mStable (thanks @CryptoMessiah for the heads up), although notably mStable doesn’t rely on the same “insurance pool” mechanics as $DUSD, and mStable’s gov token $MTA has a $70M mktcap, so over 6x $DFD’s mktcap
20/ So there you go guys, I hope my bullishness on this project is easier to understand now!
With an actual useful product, a live fully functioning platform and the existing and upcoming high profile partnerships and products, it’s crazy this is only a $10M market cap project.
21/ Some useful links:
- OptionCoin Medium: link.medium.com/O61Mq1zzwdb
- Project presentation and FAQs: docs.dusd.finance
- Medium: medium.com/defidollar
- Dune Analytics stats: duneanalytics.com/sid_31/defidol…

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More from @0xRafi

14 Feb
1/ Here is another potential game-changing project that I am very bullish on: $BONDLY / bondly.finance (@BondlyFinance).
There is A LOT to say about $BONDLY, and each part of its offering (OTC swaps, DEX, NFT Launchpad, ecommerce gateways) could be a thread of its own!
2/ But the best way to summarise it would be to say that $BONDLY aims to address a simple but major issue, which is that OTC selling / trading of digital goods (crypto, NFTs, gaming items, social media accounts…), has always needed a trusted 3rd party to act as an intermediary.
3/ This 3rd party can range from being a helpful admin of a coin’s TG group, to the pro crypto OTC desks. But they all have 2 things in common: 1) you need to trust them and 2) they ALWAYS take a meaty fee.
Read 22 tweets
13 Feb
1/ A thread on $APY @apyfinance. I believe this could become a major DeFi bluechip, and I’ve been waiting since the 10th Feb for the price to settle before posting this! But it just won’t. So I’ll post it now, but please go slowly if you buy it. It just did a 5x in 2 days!
2/ So the APY platform is a yield farming aggregator that uses a single pool of liquidity and automatic rebalances the portfolio among different strategies to optimise risk adjusted yield revenues. It is basically like having an automated fund manager managing your portfolio.
3/ Today, if for example, you have funds in a yearn vault and you realise another vault launched with better returns, it can cost 100’s of dollars in ETH fees to switch between them. For anyone not investing huge amounts, this makes switching strategies completely unpractical.
Read 14 tweets
13 Feb
I'm not really sure how to say all this but here goes.
I would like to say a big thank you to all the new followers over the last 6 days.
It means a lot that you've found some value in these threads.
I will continue to try and shine a spotlight on some of the hardest working and most innovative teams in the space.
I'll always be keen to hear about any genuinely interesting projects so don't hesitate to drop me a line.
The projects already discussed: $OCTO, $ID, $ROOM and $APY all have fantastic teams behind them and i cannot wait to see all that they achieve through 2021 and beyond
Read 5 tweets
11 Feb
1/ So guys, here’s is the 1st thread on $ROOM (@option_room) the project that practically broke Ethereum when it did its IDO on Feb 5th. $ROOM’s TG group has 29k members and their token has over 8k holding wallets. This is crazy for a 6 day old project, even for DeFi!
2/@OptionRoom is a decentralized oracle / prediction market built on @Polkadot and based on governance, so it won’t rely on external data feeds, but on users as data source, incentivized by token rewards for honest behavior & token slashing in case of dishonest behavior.
3/ The project has a dual token system, with $ROOM used to pay platform fees and rewards, and $COURT as the governance token, that will need to be staked for voting power. Users will be able to stake ROOM (or ROOM/USDT & COURT/USDT LP tokens) to earn $COURT once staking starts.
Read 11 tweets
10 Feb
1/ So guys, time to talk about $ID @EverestDotOrg, a new project I’m very bullish on. Everest is a full stack fiat onramp + KYC + DeFi + L2 project that will offer a regulatory compliant solution to link the regulated fiat financial institutions world and DeFi.
2/ And this is not just idealistic fancy talk. Although the token was launched just 2 days ago, the project has been in development since 2017 and has existing partnerships with major financial institutions (more on that later), and OG crypto projects like Aave and Kyber.
3/ Not to mention that the actual Ex-President of Estonia is an advisor. And not just a headshot-in-a-white-paper advisor. The guy is actually doing Youtube videos with Everest’s co-founder and discussing the project.
Read 24 tweets

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