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About the d2o stablecoin
d2o is an omnichain stablecoin designed to be worth approximately $1 per token which aims to act as a liquidity pipe - bringing liquidity form places where it is abundant to places where it is needed.
d2o is initially backed 1:1 with existing stablecoins, starting with native USDC on Ethereum.
d2o has two key attributes:
- 1.Anyone holding d2o can claim the underlying collateral (e.g. USDC) by burning d2o on Ethereum. This is critical for maintaining the d2o peg as if the price deviates from $1, there is an easy arbitrage opportunity possible by minting or burning d2o.
- 2.d2o has built-in functionality for uses to move it between blockchain networks. Moving d2o from one blockchain to another is as easy to carry out as a regular transaction. d2o can be teleported as a native asset to other sovereign blockchains through the decentralized dReservoir protocol, starting with Moonbeam.
As of DAM v1.0, there exists a Curve stableswap pool on Moonbeam between xcUSDT and d2o. The pool is to provide liquidity for d2o holders to obtain other tokens or for abritrageurs to by and sell d2o.
If the price of d2o falls below $1, then because d2o is redeemable for $1, it becomes profitable for arbitrageurs to obtain d2o on the secondary market, teleport it back to Ethereum and redeem it for $1.
If the price of d2o rises above $1, it becomes profitable to sell d2o for USDT in the secondary market.
Currently, there is a 25 bps (0.25%) fee chargable upon redemption of d2o.
Currently d2o is deployed on Ethereum and Moonbeam. The contracts addresses are listed below:
We are currently working on deploying d2o to other networks.