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Better UUSD adoption #982

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7 tasks
rndquu opened this issue Jan 4, 2025 · 4 comments
Open
7 tasks

Better UUSD adoption #982

rndquu opened this issue Jan 4, 2025 · 4 comments

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@rndquu
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rndquu commented Jan 4, 2025

We need to make UUSD a convenient and desirable asset to be paid out in. In other words we should make our contributors want to use UUSD instead of swapping it for a more liquid/popular asset like DAI.

What should be done:

@rndquu
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rndquu commented Jan 4, 2025

@0x4007 Regarding the Staking vs fraxlend/aave loans point.

We need a way to keep idle UUSD (i.e. contributor payouts) inside of our system. We should give contributors an incentive for that.

There are at least 2 ways:

  1. Staking
  2. Fraxlend/AAVE fork

For the Staking approach an example user flow would be:

  1. User gets payout in UUSD on gnosis
  2. User bridges UUSD from gnosis to mainnet
  3. User puts UUSD in our LUSD/UUSD curve pool and gets LUSD/UUSD LP tokens
  4. User stakes LUSD/UUSD LP tokens in our staking contract and gets rewards in UBQ tokens

This way:

  1. User is incentivised to keep UUSD in the LUSD/UUSD curve pool thus increasing pool liqudiity
  2. Ubiquity protocol has an option to get interest on staked UUSD by providing it to AAVE or some other protocol

For the Fraxlend/AAVE fork approach an example user flow would be:

  1. User gets payout in UUSD on gnosis
  2. User bridges UUSD from gnosis to mainnet
  3. User lends UUSD to the lending contract

This way:

  1. User in incentivised to lend UUSD
  2. Ubiquity protocol gets its fee from the borrowing rates

The main issue with that approach is that we somehow need to keep demand for borrowing UUSD.

@0x4007
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0x4007 commented Jan 5, 2025

Regarding borrowing: we should aim to copy the strategies of other projects to start.

A unique opportunity/risk we might have is to offer it based on devpool earnings. ubiquity/.github#110

@0x4007
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0x4007 commented Jan 10, 2025

Note: this GitHub issue being considered as a draft is implied if there are no UbiquityOS labels on it, so in the future you don't necessarily have to prefix with DRAFT.

This will automatically be sorted under https://devpool.directory/?proposal=true

@rndquu rndquu changed the title [DRAFT] Better UUSD adoption Better UUSD adoption Jan 10, 2025
@rndquu
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rndquu commented Jan 13, 2025

@0x4007 I've added #985 to the issue description. Not sure what other tasks we should add.

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