Summary:
This proposal suggests using 4 million ELX (0.4% of the total supply) from the Elixir DAO treasury to launch the “Simplified deUSD Expansion Program.” The plan is to integrate deUSD into three user-friendly DeFi protocols, such as Aave, Compound V3, and Yearn Finance (these are just suggestions—the DAO can choose what works best), rewarding users with ELX for depositing and using deUSD. The goal is to boost deUSD’s TVL by around $30M over 12 months, driving adoption and liquidity in a straightforward way.
Rationale:
The Elixir community should consider this idea because it expands deUSD’s reach in DeFi without overcomplicating things for users, a core value for the project. By plugging deUSD into leading protocols, we’d grow its utility and liquidity, supporting Elixir’s mission to connect real-world assets (RWA) with DeFi in an accessible way. Plus, using ELX as a reward strengthens its role as the governance token, aligning user interests with the ecosystem.
Propossed implementation:
-
Suggested Protocols: Integrate deUSD into Aave (for lending/borrowing), Compound V3 (for optimized lending), and Yearn Finance (for automated yield vaults), though the DAO has the flexibility to pick other protocols if it makes more sense.
-
Incentive Fund: 4M ELX (0.4% of the total supply) from the treasury.
-
Breakdown:
-
Aave: 1.7M ELX (42.5%) – 2% to 5% APY in ELX for deUSD deposits (6 months).
-
Compound V3: 1.3M ELX (32.5%) – 1% to 4% APY in ELX for deposits (6 months).
-
Yearn: 1M ELX (25%) – 1% to 4% APY in ELX for the deUSD vault (6 months).
-
-
Note: The ELX APY is an extra perk from the Elixir DAO on top of the protocols’ native yields, set as a range to keep things balanced—high enough to attract users but fair no matter how many join.
-
Budget: 4M ELX, plus around $30,000 USD for development and audits.
-
Roadmap:
-
Months 1-2: Development, negotiations, and final protocol selection.
-
Month 3: Launch on the first protocol (e.g., Aave).
-
Months 4-5: Expand to the other two (e.g., Compound V3, Yearn).
-
Months 6-12: Quarterly reviews of TVL and adjustments as needed.
-
-
Steps: Work with protocol teams on technical integration, deploy DAO-managed incentive contracts, and team up for joint promotion.
-
Benefits for Elixir: This program makes it easier for deUSD to get adopted on platforms people already know and use, boosting its TVL and trading volume in a big way. It also gives ELX more purpose as an incentive token, sparking organic interest from users who see its value grow with the ecosystem.
-
Benefits for Protocols: Hooking deUSD into Aave, Compound V3, and Yearn Finance pumps up their liquidity and TVL with cash from ELX-incentivized holders, all at no cost to them. It shakes up their asset mix, pulls in new users, and ups their appeal to institutional players by tying them to Elixir, a bridge between RWA and DeFi.
-
Potential Risks: Low participation could slow things down, but we can bump the APY to the max in the range to draw more users. If a protocol says no to integrating deUSD, we’d switch to another option like Morpho or Frax Finance. There’s also a chance the 4M ELX might not cover a huge surge in adoption, so we’d need to keep an eye on TVL and adjust if it takes off big.
-
Past Examples: Similar to liquidity incentive programs by Uniswap or Aave, which used around 0.5%-1% of their token supplies to kickstart adoption.