Synthetic Stablecoins for BSC

[huihzhao]

Main Objectives

• Algorithmic Stability: Develop innovative algorithmic mechanisms that ensure synthetic stablecoins maintain their peg reliably, even during periods of market volatility.
• Over-Collateralization Alternatives: Explore solutions that reduce the reliance on over-collateralization while maintaining peg stability. This might involve hybrid models, on-chain insurance mechanisms, or new stability algorithms.
• Protocol Security: Design synthetic stablecoin protocols prioritizing security, including robust audits, risk mitigation strategies, and protection against potential exploits.

  Challenge Description

  We seek proposals for synthetic stablecoin systems that address the vulnerabilities of existing models and demonstrate superior resilience and security within the DeFi landscape on BSC. Key considerations include:

• Resistance to Market Fluctuations: The ability to withstand significant price shocks of collateral assets, minimizing the risk of de-pegging events.
• Decentralization: Embrace decentralized governance and oracle systems to reduce single points of failure and potential manipulation.
• Capital Efficiency: Maximize efficiency of the deployed capital, potentially reducing the need for excessive over-collateralization.
• Composability: Seamless integration with other DeFi protocols, expanding the utility and adoption of synthetic stablecoins.

[UncleTom29]

Our team (Kiwi Protocol) would like to be assigned to this project @huihzhao

Team Details: Kiwi Protocol is an organization revolutionizing fundraising & decentralized services provision in web3. We are made up of experienced blockchain developers, full-stack developers, and product designers. We've built several DeFi products on BNB chain, including Kiwi Pad Bot.

Project Name: Kiwi USD (KUSD)

Kiwi USD (KUSD) is a multi-collateralized, algorithmic stablecoin designed to maintain a 1:1 peg with the US dollar. Leveraging advanced bonding curves, dynamic rebase functions, and decentralized governance, Kiwi USD provides a robust and flexible solution for stable digital currency on the BNB Chain. Our vision is to create a stable, secure, and decentralized digital currency that can be used globally for everyday transactions. Kiwi USD aims to be the go-to stablecoin for users and developers by providing unmatched stability through innovative mechanisms and ensuring transparent, community-driven governance.

Innovative Approaches:

• Multi-Collateral System: Kiwi USD supports multiple types of collateral, enhancing its stability and reducing the risks associated with single-asset collateralization. This approach allows users to leverage a variety of assets, ensuring broader adoption and resilience.

• Advanced Bonding Curves: The implementation of dynamic bonding curves allows Kiwi USD to adjust the supply and demand dynamically, ensuring the stablecoin remains pegged to the US dollar even during volatile market conditions. This mechanism provides a self-correcting system that maintains price stability without relying solely on external interventions.

• Dynamic Rebase Functions: Kiwi USD includes rebase functionality to automatically adjust the total supply based on price deviations from the target. This ensures that the stablecoin can maintain its peg to the US dollar by expanding or contracting the supply as needed, providing a more stable and predictable value.

• Decentralized Governance: Governance of Kiwi USD is managed through a decentralized autonomous organization (Kiwi DAO), enabling the community to propose and vote on protocol changes, parameter adjustments, and upgrades. This decentralized governance model ensures that Kiwi USD remains transparent, secure, and aligned with the interests of its users.

• Dynamic Fee Structure: The protocol incorporates a dynamic fee structure that adjusts based on market conditions, discouraging sudden large changes in supply and demand. This feature further enhances the stability and usability of Kiwi USD in various market scenarios.

• Security and Transparency: Kiwi USD prioritizes security and transparency through extensive testing, formal verification, and regular audits. Additionally, a comprehensive monitoring system is implemented to provide real-time tracking of the contract state changes, ensuring users have confidence in the stable coin's integrity.

[huihzhao]

@UncleTom29 could you please share your website and x account here?

[UncleTom29]

Sure, Website: https://kiwiprotocol.org X account: x.com/kiwiprotocol

[huihzhao]

BitU - https://www.bitu.io/ BitU Protocol is a decentralized credit network and omni-trading hub powered by the overcollateralized $BITU stablecoin that can be staked to earn real yield. BitU is an MVB VII winner in BNB Chain ecosystem. How does it works？

Liquidity

Users can mint corresponding amounts of $BITU stablecoins based on the Collateral Ratio (CR) by providing supported collateral assets. The minting process in BitU Protocol operates under a whitelist mechanism, meaning only whitelisted addresses can use their collateral assets to mint $BITU. $ BITU itself is permissionless and decentralized. Staking

After minting $BITU, the collateral stored in the custodial institution is mirrored to centralized exchanges through the custodian's mirroring service, and managed by BitU's Active Liquidity Management Module (ALMM).

The mirrored assets can be used to do Lending or Market-neutral investment strategies.

https://docs.bitu.io/bitu/project-design/architecture

Comparison

What makes BitU best-suited to execute this Mission? BitU Protocol looks to resolve several core issues with most stablecoins by building a stability primitive with real-yield staking, and providing unrestricted access to an omni-trading hub of diverse assets across numerous markets from a single unified experience.

[petrkrulis2022]

Hiya, here is short pitch of our stablecoin project, it may be not quite clear at first so if anyone wants to know more details let me know please, thanks. Core Concept: BNBS+ is a value-accruing stablecoin backed by Liquid Staking Tokens (LSTs) of BNB. By capitalizing on staking rewards and MEV opportunities within the BNB Chain ecosystem, it offers users a stable asset with increasing value. Larger BNB holders can increase returns through re-staking their BNB LST ( or stablecoin converted to LST and LRT ) by joining the Incentivized Stability Pool to support peg stability and receive LRT token in return. Key Features o Backed by BNB LSTs: Users mint BNBS+ by depositing various BNB LSTs. o Pegged to BNB Staking Yield: The target price of BNBS+ grows over time, following the staking rewards APY of BNB in a form of tracking prices o value-accruing LSTs ( The recently launched MEV solution is expected to increase the staking APY by at least 5%-10% ) . o Target price formula : Volume weighted average price of various value-accruing LSTs ( BNBx for example ) divided by the price of the underlying BNB token. Dynamic , adapts in real-time to changing volumes and prices of LSTs employed as collateral. o Peg Stability : Dynamic adjustment feature should accommodate fluctuations while establishing flexible and responsive mechanism. Protocol leverages the inherent peg stability of these LSTs and its providers and adds own extra layer of the peg stability protection with Incentivized pool that utilizes re-staking of large BNB holders.( Threshold requirement and possible “brokered deposits” on behalf of retail ) . o Incentivized Stability Pool: Users can deposit BNFTD+ back to the protocol or simply re-stake their BNB LST to help maintain the peg. o Re-staking Mechanism: Leverages re-staking protocols to earn additional yield for users entering the Incentivized Stability Pool to support peg stability and receive LRT token in return. o Capital Efficiency: Reduced reliance on over-collateralization through dynamic collateral ratios and risk management via debt tranches.

[Mirror-Tang]

The focus of this research appears to be designing a stablecoin anchoring algorithm, which seems more appropriate to adjust as a research task rather than a project grant.

[Mirror-Tang]

Hiya, here is short pitch of our stablecoin project, it may be not quite clear at first so if anyone wants to know more details let me know please, thanks. Core Concept: BNFTD+ is a value-accruing stablecoin backed by Liquid Staking Tokens (LSTs) of BNB. By capitalizing on staking rewards and MEV opportunities within the BNB Chain ecosystem, it offers users a stable asset with increasing value. Larger BNB holders can increase returns through re-staking their BNB LST ( or stablecoin converted to LST and LRT ) by joining the Incentivized Stability Pool to support peg stability and receive LRT token in return. Key Features o Backed by BNB LSTs: Users mint BNFTD+ by depositing various BNB LSTs. o Pegged to BNB Staking Yield: The target price of BNFTD+ grows over time, following the staking rewards APY of BNB in a form of tracking prices o value-accruing LSTs ( The recently launched MEV solution is expected to increase the staking APY by at least 5%-10% ) . o Target price formula : Volume weighted average price of various value-accruing LSTs ( BNBx for example ) divided by the price of the underlying BNB token. Dynamic , adapts in real-time to changing volumes and prices of LSTs employed as collateral. o Peg Stability : Dynamic adjustment feature should accommodate fluctuations while establishing flexible and responsive mechanism. Protocol leverages the inherent peg stability of these LSTs and its providers and adds own extra layer of the peg stability protection with Incentivized pool that utilizes re-staking of large BNB holders.( Threshold requirement and possible “brokered deposits” on behalf of retail ) . o Incentivized Stability Pool: Users can deposit BNFTD+ back to the protocol or simply re-stake their BNB LST to help maintain the peg. o Re-staking Mechanism: Leverages re-staking protocols to earn additional yield for users entering the Incentivized Stability Pool to support peg stability and receive LRT token in return. o Capital Efficiency: Reduced reliance on over-collateralization through dynamic collateral ratios and risk management via debt tranches.

Your project is good, but you should focus more on introducing the synthesis algorithm rather than your project itself. I suggest presenting it in the form of a research agenda and highlighting your team's previous research experiences and strengths.

[petrkrulis2022]

Hiya thanks for clarification, I will submit it today .bests.

[petrkrulis2022]

BNBS+ & BLRT+
designing a double-tiered stablecoin anchoring algorithm leveraging LSTs and LRTs within BNB ecosystem

https://pitch.com/v/ai-bnfd-pegging-algorithm-research-kzkbab https://drive.google.com/file/d/16O-wOoS51xr__Xto2N_CO8B4C6ix0ndo/view?usp=drive_link BNFD+ Pegging Algorithm Research.pdf

[Mirror-Tang]

BNBS+ & BLRT+ designing a double-tiered stablecoin anchoring algorithm leveraging LSTs and LRTs within BNB ecosystem

https://pitch.com/v/ai-bnfd-pegging-algorithm-research-kzkbab https://drive.google.com/file/d/16O-wOoS51xr__Xto2N_CO8B4C6ix0ndo/view?usp=drive_link BNFD+ Pegging Algorithm Research.pdf

I am glad to see that you provided feedback so quickly. I have carefully reviewed your document and have some suggestions:

1. Enhance your team information by adding more details about your educational background, previous related research articles, and open-source work.
2. Define your goals clearly: What is the ultimate outcome you aim to achieve, and how will it benefit the BNB Chain?
3. Set milestones for yourself to track progress.

[stelios12312312]

Hello,

We have been working on a flatcoin/stablecoin that fits this description perfectly: https://janusdefi.com/

The aim of Janus is to create a completely decentralised, and capital efficient flatcoin. This is done through a combination of mechanisms that control market volatility. Part of the overall model is a seamless integration with DeFi primites (e.g. borrowing/lending), which are then used within Janus to improve stability.

We'd be happy to explain everything in more detail. @huihzhao