$DUB - Indexcoin
$DUB's introduction
$DUB is an ERC-20 token fully collateralized and pegged to a basket of stablecoins consisting of USDC, USDT, and DAI. As an ERC-20-compliant token native to the Arbitrum chain, $DUB is designed to be stable and maintain a consistent value, achieved by tracking the stablecoin basket's weighted average using Chainlink oracles as price feeds.
With its strong partnerships, top-tier yield-generating strategies, and utility, $DUB represents a powerful new way for users to maximize the value of their stables. As a stable indexcoin, $DUB offers a secure and reliable option for investing in stablecoins while eliminating the volatility commonly associated with cryptocurrencies. Leveraging the benefits of DeFi, $DUB provides users with access to high-yield opportunities and a range of innovative financial instruments.
Minting $DUB
$DUB can be minted by users through the "Minting" feature which will be available on the Dubble DEX from day 1. This feature allows users to convert their existing stablecoins (USDC, USDT, and DAI) into $DUB, which is designed to maintain a stable value by tracking the weighted average of the stablecoin basket using Chainlink oracles as price feeds. Once minted, $DUB immediately begins accruing compounding yield for users.
Redeeming $DUB
To redeem their $DUB, users can use the "Redeem" feature on the Dubble DEX, which enables them to convert $DUB back into other stablecoins at any time. However, a 0.25% exit fee is charged upon redemption, which is dependent on the ratio of the current protocol holdings at the time of redemption. This lack of user optionality serves to protect the vault as a whole in the event that any of the supported stablecoins loses its peg to the dollar.
Yield Strategies
$DUB generates yields by utilizing the underlying stablecoin collaterals in the Dubble DEX smart contract to access a diverse portfolio of yielding opportunities across all of DeFi. As the protocol grows and new yielding opportunities arise, new strategies will be continually added to ensure optimal returns for users.
Elastic Supply
Dubble DEX generates returns through a dynamic supply adjustment mechanism that benefits holders of $DUB. Through ~24-hour rebasing cycles, $DUB adjusts its supply in response to the yield generated by the protocol. This ensures that the price of $DUB remains stable, while the balances in users' wallets adjust in real-time to reflect the yields earned by the protocol.
The end result is a stable indexcoin that is 100% collateralized, providing users with a convenient and easy-to-use option for spending and storing their assets. By leveraging this dynamic supply adjustment mechanism, $DUB generates organic yields automatically, making it more desirable to hold than individual stablecoins. As a result, users can benefit from the stability and reliability of a diversified basket of stablecoins while enjoying the added benefit of yield-generating strategies offered by Dubble DEX.
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