LSR

What is LSR?

The LSR (Liquid Stability Reserve) module allows users to use supported stablecoins including USDC, USDT, and DAI as collaterals to mint USX (or redeem USX for supported stablecoins) at 1:1 rate. The launch of LSR was approved through DIP027.

LSR is an improved version of Maker’s PSM (Peg Stability Module), with all stablecoins collected from LSR being deposited into dForce Lending to earn yield, unlocking a new revenue stream for dForce Treasury.

Benefits

LSR is designed to help USX maintain its dollar peg in a more efficient manner:

• Users can 1: 1 mint USX against supported collateral stablecoins (USDC, USDT, DAI).

• Each collateral stablecoin carries a ‘Minting Cap’ to back the issuance of USX, translating to the total amount of USX that can be minted against each collateral stablecoin. Click here to view the minting cap for each collateral stablecoin supported.

• All stablecoin reserves collected from the LSR module will be automatically deposited into lending protocols (i.e., dForce Lending, Aave, etc) to earn yields, unlocking a new revenue stream for dForce Treasury.

Since most stablecoin reserves will be supplied to lending protocols to earn yield, if the LSR pool doesn’t have a sufficient balance to support redemption, users can still sell USX on supported DEXes.

Fees

We don’t charge any fees for minting USX from other supported stablecoins; however, there will be a 0.1% fee applied for each redemption of USX for other supported stablecoins.