- In an attempt to rival Ethena Labs’ USDe, Elixir presents deUSD, a new synthetic dollar asset that is fully collateralized and decentralized.
- Elixir synthetic dollar deUSD, which is backed by stETH, focuses on stability even in the face of harsh market situations and gives holders the opportunity to earn additional yields through liquidity incentives.
- Through its Apothecary program, the initiative has locked up over $300 million in value and secured $1 billion in liquidity for deUSD.
A modular blockchain project The synthetic dollar asset known as deUSD has been officially released by Elixir. This new product aims to create a decentralized rival in the stablecoin market by competing with USDe, which is provided by Ethena Labs.
Challenge with Elixir Synthetic Dollar deUSD The USDe of Ethena
The operation of arbitrage and yield-returning techniques, which are collateralized by cryptocurrency assets and delta-hedged, stabilizes Ethena Labs’ USDe. Although it is implemented inside a decentralized financial framework, the handling of its collateral eventually requires centralized exchanges and custodians.
Elixir synthetic dollar deUSD, which is used to short ether in a delta-neutral position, is always completely collateralized by stETH. The deUSD stakers may be able to collect additional yields awarded for liquidity provisioning in this configuration. The project team emphasizes that, in contrast to USDe’s reliance on centralized systems, the Elixir synthetic dollar actually decentralizes and is a non-custodial alternative with verifiable execution and open-source code.
Elixir Secures $1 Trillion in Liquidity Prior to Mainnet Introduction
According to Elixir, the deUSD will not fluctuate significantly during periods of high market volatility. With notable backing from DeFi platforms like Pendle, which is creating a market for Elixir’s Apothecary effort, the project has $1 billion in liquidity planned for the new coin. It’s a system made to monitor user contributions and award involvement with points.
With the exception of the $1 billion reserved for deUSD, Elixir’s Apothecary program has amassed approximately $300 million in total value frozen since it launched in March. The project is moving quickly toward September, which is expected to be the much awaited mainnet launch of deUSD.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
