Summary
This proposal announces the submission of wUSDL as collateral on steakPYUSD for Ethereum.
Introducing wUSDL
wUSDL is the wrapped version of USDL, the Lift Dollar issued by Paxos and supervised in Abu Dhabi. It is a yield-bearing stablecoin, which uses a rebase function daily. The wrapped version, wUSDL, accrues interests enabling DeFi compatibility.
USDL is currently around $43M market cap.
Market details
The market will use a fixed $1 price for USDL. First, markets are not liquid enough to be immune to manipulation. Moreover, PYUSD (the loan asset) and USDL are both issued by Paxos. Lastly, PYUSD and USDL are correlated assets meaning that even if USDL and/or PYUSD redemption should be disrupted for some time, leading to delayed liquidity, it shouldn’t impact markets.
LLTV of 98% is possible thanks to significant instant liquidity provided on Curve and Paxos support.
steakPYUSD@Ethereum:
- Market Id: 0xeea9a2431eba248f1cc4d8d3d2a34b31cbf4884ecc602f9270372f892a2ba185
- Collateral: 0x7751E2F4b8ae93EF6B79d86419d42FE3295A4559
- Oracle: 0x0a1577c7eca50871eecab68e799f2efa69f1fa96
- IRM: 0x870aC11D48B15DB9a138Cf899d20F13F79Ba00BC (default one)
- LLTV: 98%
- Supply Cap: 20M PYUSD
Next steps
We will add the market shortly. Please feel free to comment or ask any question in this thread or via DMs.
As always, Steakhouse vault holders can easily veto any change using the Aragon guardian over the next 7 days, which follows the best-in-class risk standard for lenders.
For reference, here is the Aragon DAO links where users can wrap their vault token and create a vote: