SINGAPORE (June 20, 2024) - We are thrilled to announce the upcoming launch of dTRINITY, a revolutionary stablecoin liquidity protocol that offers lower borrowing costs to enhance looping strategies for yield-bearing assets such as sFRAX (Staked FRAX), sUSDe (Staked USDe), and sDAI (Staked DAI).
dTRINITY has been in development since Q1 2024 and will officially go live in Q3 on the Fraxtal mainnet, with follow-up expansions to Ethereum and other blockchains in Q4 and beyond. The protocol is developed by Trinity Foundation Ltd., a Singapore-based non-profit public company limited by guarantee, with core project contributors including the founders of Stably and strategic advisors from Frax Finance and CREAM Labs.
Yield "looping," or leveraging, is a process where a DeFi user repeatedly supplies a yield-bearing asset (e.g., sFRAX) to a lending protocol and borrows stablecoins against it as collateral. The borrowed stablecoins are then used to acquire more of the yield-bearing collateral asset, effectively increasing exposure to it with leverage. This strategy is profitable if the yield generated by the leveraged collateral exceeds the interest rate (borrowing cost) of the stablecoin loans. However, there are also significant risks involved with yield looping strategies.
dTRINITY enhances yield looping through the vertical integration of its native stablecoin (dUSD), lending protocol (dLEND), and decentralized exchange (dSWAP).
Yield-bearing collaterals can be supplied to dLEND to take out dUSD loans. Borrowing costs for dUSD are subsidized by its collateral reserve’s float income (i.e., interest income), enabling users to loop/leverage more efficiently at lower interest rates. The borrowed dUSD can also be swapped for more yield-bearing collaterals through dSWAP. Additionally, dSWAP serves as a collateral liquidation venue for dLEND positions.
dTRINITY USD (dUSD) is a US Dollar stablecoin backed 1:1 by liquid collateral assets. The dUSD collateral reserves consists of bank deposits, money market funds, and USDC held in a Wyoming statutory trust for the benefit of verified dUSD holders. Every dUSD is backed by and redeemable 1:1 for USD or USDC. Third-party attestations are also conducted periodically to maintain public transparency for the dUSD collateral reserve.
dUSD is dTRINTY’s native stablecoin and unified liquidity layer, serving as the base pair for both dLEND and dSWAP. Unlike major stablecoins that do not externalize the float income from their reserves, dUSD prioritizes the dTRINITY community by sharing a majority of its float income as interest rate subsidies to stimulate growth and adoption for the protocol. This approach reinforces a community-centric model where the success of protocol translates directly into enhanced value for community members as both dTRINITY and dUSD continue to scale.
dUSD can be minted or redeemed through Stably, dTRINITY’s official fiat onramp and Stablecoin-as-a-Service partner. Verified users globally can mint or redeem dUSD 1:1 with USD or USDC (minus Stably’s fees).
dTRINITY users can also swap other assets with dUSD on-chain through dSWAP.
dTRINITY will be deployed on Fraxtal as its genesis network. Created by the Frax team, Fraxtal is the first modular rollup Ethereum L2 with a native blockspace reward mechanism called Flox. This means that not only will users earn incentives on the Fraxtal network, smart contracts on Fraxtal like dTRINITY will also accrue incentives which could be redistributed to users as additional rewards later on, further enhancing their benefits.
Upon mainnet launch in Q3, dUSD lenders and LPs will earn dTRINITY points for contributing stablecoin liquidity to the protocol. Accumulated points will be converted to dTRINITY’s governance tokens (TRIN) in the future, with the token generation event (TGE) currently planned for Q4. More details about the point program and TRIN will be announced soon.
Fraxtal testnet access for dTRINITY will be available publicly by the end of June 2024. A bug bounty program will also be announced soon. Mainnet launch is currently planned for early Q3.
View dTRINITY’s full roadmap
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❓ To learn more about dTRINITY, please refer to the official resources below:
Disclaimer: The dTRINITY protocol is developed by Trinity Foundation Ltd., a non-profit public company limited by guarantee based in Singapore. dUSD is a Stablecoin-as-a-Service solution provided to Trinity Foundation for dTRINITY by Stably, a Delaware corporation, and its wholly owned Wyoming subsidiary, a FinCEN-registered money service business. dTRINITY and dUSD are not available to residents of Canada, China, Iran, North Korea, Russia, the USA, the UK, the EU, and other prohibited jurisdictions.
The information contained herein should not be considered financial advice. Past performance is not indicative of future results. Digital assets, including stablecoins, and DeFi protocols carry significant risks, including the potential for complete loss of funds. By using dTRINITY and dUSD, you acknowledge and accept these inherent risks and agree to hold dTRINITY, Trinity Foundation, and Stably harmless from any resulting damages or liabilities.