As a seasoned researcher with over a decade of experience in the blockchain space, I find myself captivated by the innovative spirit and potential of dTRINITY. Having witnessed the evolution of DeFi from its infancy, I can confidently say that this next-generation stablecoin liquidity protocol is poised to address one of the most pressing challenges in the industry: rising credit costs.
Singapore, Singapore, December 18th, 2024, Chainwire
In simple terms, the cutting-edge stablecoin liquidity platform called dTRINITY has unveiled its initial launch on the Fraxtal Layer 2 network. This innovative system is aimed at reducing borrowing costs and enhancing returns for users of stablecoins, tackling the crucial issue of escalating credit fees in Decentralized Finance (DeFi) by lowering interest expenses and boosting yields.
The foundation of dTRINITY lies in a built-in stablecoin (dUSD), acting as a shared liquidity source between its money market platforms (dLEND, similar to Aave v3) and external liquidity pools like Curve. The dUSD is pegged 1:1 to an on-chain collateral reserve that holds stablecoins such as USDC, FRAX, DAI, plus yield-generating coins like sFRAX and sDAI. Yields from this reserve are utilized to pay interest rebates for borrowers on dLEND, proportionate to their outstanding loans, thereby lowering the effective borrowing rate. This system not only boosts borrowing demand but also encourages more sustainable usage and returns for lenders of dUSD.
As a researcher, I am thrilled to announce that I am part of the team bringing dTRINITY to life on FraxTal as its genesis network. This collaboration with Frax is not just strategic; it’s about optimizing ecosystem liquidity and user incentives. FraxTal, an EVM-equivalent rollup, offers a scalable smart contract platform and efficient execution environment powered by the OP stack.
In the coming times, dTRINITY intends to grow its presence on Ethereum and other upcoming blockchain platforms. This move is aimed at enhancing liquidity and compatibility between different chains, with Fraxtal serving as the key facilitator as the network continues to expand.
Key Features of dTRINITY:
- Subsidized Interest Rate Model: dTRINITY’s innovative subsidized interest rate model lowers the equilibrium of stablecoin borrowing costs on dLEND vs. other protocols without impacting lending yields. In fact, rebates at low utilization levels could even result in negative interest rates for dUSD borrowers (i.e., borrowers could get paid to borrow).
- Liquidity Incentives: dUSD lenders and liquidity providers benefit from a combination of protocol rewards and external incentives from strategic partners (in both points and tokens) for supplying and bolstering liquidity in the ecosystem.
- Security & Risk Management: dTRINITY has successfully completed smart contract audits with three leading blockchain security firms: Halborn, Verichains, and Cyberscope. Additionally, the protocol disables rehypothecation of supplied collateral by default to minimize risk exposure. dUSD is the only borrowable asset on dLEND and it cannot be borrowed against itself.
- Strategic Partnerships: In addition to Frax, dTRINITY also plans to collaborate symbiotically with other major DeFi protocols. First, dUSD can be expanded to other lending platforms (e.g., Fraxlend, Morpho), providing their users with similar subsidy benefits. Secondly, dUSD can serve as a cheaper medium of leverage for loopers using other stablecoins/yieldcoins (e.g., Ethena, crvUSD), increasing demand for both projects. Furthermore, the dUSD reserve’s composition will be diversified over time, opening up potential partnership opportunities with more stablecoin/yieldcoin projects.
The main team behind dTRINITY consists of the co-creators of Stably. This project has been under construction since the second quarter of 2024, and it recently won first place at both the ETHVietnam and Fraxtal Hackathons this year. In terms of strategy, dTRINITY is being guided by the co-founders of Frax, Convex, Sky (previously known as MakerDAO), Coin98, and Promontory Partners. These advisors bring a wealth of knowledge from some of the most influential names in stablecoin and DeFi innovation to the development of this protocol.
For more information, users can visit dtrinity.org and follow @dTRINITY_DeFi on X.
About dTRINITY
The innovative platform, known as dTRINITY, marks the debut of the globe’s first subsidized lending protocol. Its primary goal is to lessen borrowing expenses and boost returns for users engaging with decentralized finance (DeFi) who utilize stablecoins. This cutting-edge protocol operates on the basis of dUSD, a self-regulating stablecoin that is backed at a 1:1 ratio by an on-chain yieldcoin reserve. Yields originating from this reserve are utilized to cover ongoing interest refunds for borrowers of dUSD, thereby reducing their effective loan rates. Currently, dTRINITY is operational on the Fraxtal L2 network, and it plans to extend its services to Ethereum and other networks in the future.
Contact
Core Contributor
Kory Hoang
Trinity Foundation Ltd
hello@dtrinity.org
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2024-12-18 21:26