Overview of the USD.m liquidity provider token for UniDex
Arbitrum: 0x1E0aa9B3345727979665FcC838d76324cBA22253
The USD.m vault represents a groundbreaking approach to liquidity provision on perp protocols, enabling participants to act as market makers on UniDex while simultaneously tapping into yields from multiple DeFi protocols. This innovative strategy, which we term “multi-protocol rehypothecated yield optimization,” offers USD.m holders diverse streams of income.
Engaging with the USD.m vault offers several compelling benefits:
This multi-faceted approach to yield generation positions USD.m as a cutting-edge tool for maximizing DeFi returns.
To mint USD.m, users need to use any supported stablecoin (such as USDC, DAI, USDT, or sUSDe) and deposit it into the USD.m vault. The USD.m minted is based on the current USD.m price.
Redeeming USD.m is straightforward. Users enter the amount of USD.m and select a supported stablecoin to redeem for the equivalent value. The USD.m is then burned, and the stablecoin is sent to the user’s wallet.
Users can mint USD.m cross chain using various meta-aggregators like Axelar, Li.fi, and more.
USD.m provides liquidity for traders, allowing them to take positions with leverage. The relationship between USD.m holders and traders is as follows:
Rewards for providing liquidity and counterparty risk are based on the Arbitrum chain where the USD.m was minted.
Although USD.m value is market neutral and not directly affected by crypto market volatility, holding USD.m still carries risks:
The open interest available for the platform is limited by the total stablecoin value available in USD.m. Traders cannot open a new position if the total platform open interest meets or exceeds the total TVL in USD.m.
A portion of all protocol-generated fees, including opening/closing positions, minting USD.m, borrow fees, and excess funding fees, as well as any losses from traders’ realized P&L and liquidations, go towards the USD.m vault, causing its price to increase over time. Any profits from traders’ realized P&L are paid out from the USD.m vault, causing its price to decrease.
The USD.m price is based on the number of USD and USD.m in the vault, at any time, where:
50% of all platform fees are automatically added to the USD.m vault. There is no need to stake USD.m to receive these fees; simply holding USD.m automatically accures additional value over time. This is similar to LSD tokens like stETH or sUSDe where the value of the token increases over time because the fees are added to the vault directly increasing the value of the token.
However, to receive external rewards from the USD.m vault, users must stake their USD.m in the USD.m staking pool. This pool allows you to earn additional rewards from the USD.m vault such as esMOLTEN or any other rewards that are added for being a USD.m staker. The pool found at UniDex’s USD.m staking page for example, allows you to stake USD.m and earn esMOLTEN.
Overview of the USD.m liquidity provider token for UniDex
Arbitrum: 0x1E0aa9B3345727979665FcC838d76324cBA22253
The USD.m vault represents a groundbreaking approach to liquidity provision on perp protocols, enabling participants to act as market makers on UniDex while simultaneously tapping into yields from multiple DeFi protocols. This innovative strategy, which we term “multi-protocol rehypothecated yield optimization,” offers USD.m holders diverse streams of income.
Engaging with the USD.m vault offers several compelling benefits:
This multi-faceted approach to yield generation positions USD.m as a cutting-edge tool for maximizing DeFi returns.
To mint USD.m, users need to use any supported stablecoin (such as USDC, DAI, USDT, or sUSDe) and deposit it into the USD.m vault. The USD.m minted is based on the current USD.m price.
Redeeming USD.m is straightforward. Users enter the amount of USD.m and select a supported stablecoin to redeem for the equivalent value. The USD.m is then burned, and the stablecoin is sent to the user’s wallet.
Users can mint USD.m cross chain using various meta-aggregators like Axelar, Li.fi, and more.
USD.m provides liquidity for traders, allowing them to take positions with leverage. The relationship between USD.m holders and traders is as follows:
Rewards for providing liquidity and counterparty risk are based on the Arbitrum chain where the USD.m was minted.
Although USD.m value is market neutral and not directly affected by crypto market volatility, holding USD.m still carries risks:
The open interest available for the platform is limited by the total stablecoin value available in USD.m. Traders cannot open a new position if the total platform open interest meets or exceeds the total TVL in USD.m.
A portion of all protocol-generated fees, including opening/closing positions, minting USD.m, borrow fees, and excess funding fees, as well as any losses from traders’ realized P&L and liquidations, go towards the USD.m vault, causing its price to increase over time. Any profits from traders’ realized P&L are paid out from the USD.m vault, causing its price to decrease.
The USD.m price is based on the number of USD and USD.m in the vault, at any time, where:
50% of all platform fees are automatically added to the USD.m vault. There is no need to stake USD.m to receive these fees; simply holding USD.m automatically accures additional value over time. This is similar to LSD tokens like stETH or sUSDe where the value of the token increases over time because the fees are added to the vault directly increasing the value of the token.
However, to receive external rewards from the USD.m vault, users must stake their USD.m in the USD.m staking pool. This pool allows you to earn additional rewards from the USD.m vault such as esMOLTEN or any other rewards that are added for being a USD.m staker. The pool found at UniDex’s USD.m staking page for example, allows you to stake USD.m and earn esMOLTEN.