[Proposal] Add flexUSD to the basket

Summary:

Integrate flexUSD, a stablecoin issued by CoinFLEX.com as a basket asset (bAsset) to the basket for mUSD.

Motivation:

This community proposal requests an additional stablecoin token, flexUSD, be represented in the mUSD mStable asset (mAsset) basket.

flexUSD is an ERC20 token minted by stakers on the CoinFLEX.com platform. flexUSD is minted (and redeemed) as a 1:1 conversion to/from USDC. flexUSD is the first interest bearing stablecoin that pays interest at the base level.

This is achieved by deploying the USDC that was minted into the CoinFLEX repo market which earns yield by borrowers, lenders and crypto delivery using this repo market and paying basis fees every 8 hours to the other side of the transaction.

The current bAssets underlying mUSD are USDT, USDC, TUSD, and sUSD. This proposal would add flexUSD as a 5th asset.

Pros:

  • Diversify mUSD basket exposure with another stablecoin (flexUSD)
  • Increase demand for mUSD from flexUSD holders
  • Increase swap fees with flexUSD as an additional mUSD basket asset
  • Current flexUSD yields of 10+% APY returns additional yield into SAVE
  • Sustainable yield that has been around for 50 years and will be around for at least that time again as it is generated by real underlying commercial activity and basis in the underlying derivatives markets.

Cons:

  • flexUSD yields are subject to variation as its sustainable yield is generated via repo activity by borrowers, lenders and traders who are physically delivering crypto.**
  • Add flexUSD
  • Do not add flexUSD

0 voters

Hey there! Welcome to the mStable community.

Very interesting idea. Could you provide flexUSD’s contract address for easy access and review?

Thanks!

Hey Derek, I found it here https://etherscan.io/token/0xa774FFB4AF6B0A91331C084E1aebAE6Ad535e6F3

IMO we should not add flexUSD due to the lack of market depth and unknown risk profile of the asset.

2 Likes

Maybe we should start looking into some sort of minimum requirements for any asset to be considered before having a vote, to set the right expectations for projects in the future.

3 Likes

I won’t deny flexUSD’s value proposition is interesting. However, I have two major concerns here:

  • mynameisjeff correctly identified the flexUSD token contract. Currently there are only a few flexUSD on Ethereum, while the vast majority of liquidity appears to be on Bitcoin Cash right now.
  • With mStable’s new AMM, as proposed, having minimum and maximum weights with penalties and bonuses, I’m concerned about the ability to maintain a minimum weight with so few flexUSD on Ethereum now, and an uncertain amount on Ethereum in the near future.

I think this would be a more prudent discussion to have later this year, perhaps in Q3 or Q4, especially after a published audit.

2 Likes

A no from me… and it looks like almost all of these voters in favour of adding flexUSD have joined the forum in the last 48hrs (ie are new accounts), so I’m suspicious of the validity of this vote outcome too.

2 Likes

I checked social media and it looks like the project came out of nowhere 5 days ago.
This kind of currency addition puts the basket in a risky situation.

1 Like

The smart contract was audited by Quantstamp. I’m not able to post the link, but can DM you or post it on discord.

We can talk to some of the large flexUSD holders and ask them to convert flexUSD-SLP to flexUSD-ERC20, if they do would this satisfy your concerns around supply on Ethereum?

Thanks @dareksilva really appreciate the feedback!