Integrate sUSD from the Synthetix protocol as a basket asset (bAsset) to the basket for mUSD.
This simple proposal requests an additional USD token, sUSD, be represented in the mUSD mStable asset (mAsset) basket.
sUSD is an ERC20 token minted by stakers on the Synthetix platform. Stakers overcollateralize the SNX token (currently at a 600% ratio) in order to mint sUSD which is then used to trade synthetic assets on the Synthetix Exchange platform.
The current bAssets underlying mUSD are USDT, USDC, TUSD, and DAI. This proposal would add sUSD as a fifth asset.
Three of the assets currently in the mUSD basket (USDT, USDC, TUSD) are centralized. This concentration leaves mUSD exposed to risks such as opaque collateral assets and censorship. Adding another decentralized stablecoin (sUSD) to the basket (along with DAI) will mitigate these risks for mUSD.
Also, mUSD could use more total value locked and trading activity. It can be assumed that additional basket assets will increase demand on the mStable platform. Users holding sUSD would mint mUSD to take advantage of high yield in the SAVE module and traders will seek sUSD for arbitrage or ecosystem needs.
- Diversify mUSD basket exposure into another decentralized stablecoin (sUSD)
- Increase demand for mUSD from sUSD holders
- Increase swap fees with sUSD as an additional mUSD basket asset
- sUSD is prone to floating significantly away from its $1 peg: sUSD is currently above peg and will be underweight in the mUSD basket if added
- Yes, add sUSD to the basket
- No, do not add sUSD to the basket