Elixir has introduced deUSD, a new synthetic dollar asset, as a decentralized and completely collateralized alternative to Ethena Labs’ USDe.
Blockchain initiative that is modular Elixir has disclosed the introduction of its synthetic dollar asset, deUSD. Ethena Labs’ USDe will be the primary competitor of this new offering, which aims to establish a decentralized competitor in the stablecoin market.
The USDe of Ethena Labs is stabilized by the operation of arbitrage and yield-returning strategies, which are secured by crypto assets and delta-hedged. It works in a decentralized finance system, but its security needs to be handled by controlled platforms and managers in the end.
Elixir synthetic dollar deUSD is consistently completely collateralized by stETH and is employed to short ether in a delta-neutral position, as per The Block. The deUSD stakers could potentially obtain the additional yields granted for liquidity provisioning in this design. In contrast to USDe’s dependence on centralized systems, the Elixir synthetic dollar is a non-custodial alternative with verifiable execution and open-source code that authentically decentralizes, according to the team behind this project.
Elixir claims that deUSD will maintain its stability, even during periods of significant market volatility. The project has secured $1 billion in liquidity for the new token, and it has received high-profile support from DeFi platforms, such as Pendle, which is establishing a market for Elixir’s Apothecary initiative. The purpose of this system is to monitor user contributions and incentivize participation through the accumulation of points.
The Apothecary program by Elixir has amassed a total value of over $300 million in secured value since its launch in March, excluding the $1 billion designated for deUSD. The initiative is rapidly approaching the potentially highly anticipated mainnet introduction of deUSD in September.
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