[PIP-72] USD++ Health-Check

Summary

As next step of the Product Refinement initiative we’d now like to propose a health check of USD++ - USD Index Pie

Background

USD++ was one of the first products ever discussed within the PieDAO community, and launched back in June 2020 as an innovative risk-adjusted stable-pool with weights determined by a balanced combination of the following parameters:

  • Volatility to peg of the underlying assets
  • Trust minimization factor
  • Market risk

Main motivating being the fact that, despite the variety of stable-coins available back then on the Ethereum network, some were centralized while others algorithmically managed and trust minimized, but often less effective in keeping the peg to the dollar. A more comprehensive background can be found here.

Specification

We’ve been condensing below the few stats available on USD++, respecting the framework previously proposed in order to ensure cross-pie comparability.

Market Fit: #Holders of USD++ index have been flat since more than an year now as can be seen from the plot below. The absence of a market for USD++ may have definitely affected this.

Revenue, Operational Costs & Current Liquidity: n/a

Performance: The current TVL is extremely low, below the $50k mark, down from the peak of approx $3m scored back in mid July 2020 (significant $BAL incentives were paid to USD++ holders back then).

Based on the above, it seems clear that no Market fit was reached by this product.

NOTE: USD++ has been subject of discussion in the forum through a proposal for revamping introduced by @Guzman_MassAdoption and @BlockEnthusiast: such proposal has eventually stalled as the community showed limited support. It’s anyhow important to highlight how a newer version of a stable product could be well discussed and proposed going forward as a brand new product, with no ties to the current USD++.

Proposal

The proposed solution would be to discontinue USD++ from the PieDAO offering. This process could take place with no delay.

Should this proposal be approved, USD++ would be added to the deprecated PieDAO products page. Current USD++ holders may either opt to keep their position or exit the pie through the option of Social Exit detailed below:

  • PieDAO to share a multisig address for a certain period of time (~ 1 month), where all USD++ holders could send in their USD++
  • PieDAO to redeem the liquidity collected and swap for ETH
  • USD++ holders to receive back an equivalent $value in ETH, after deducting a small 2% fee as partial compensation for the gas cost incurred.

Let’s feel the pulse of this proposal though a poll

Should USD++ be decommissioned
  • Yes
  • Nope
  • More Info required

0 voters

1 Like

a product nobody uses can certainly be decommissioned…
that being said …
if USD++ would be a yield bearing asset (make use of the ++ in the end)
i think that would be rather sweet…

3 Likes

Thanks for putting this together Gabo. I totally agree with the following comment.

3 Likes

Graphs say it all ; No one is interested anymore and low performance of Pie

1 Like

Curious as to why the community didn’t support the revamp proposal. From some of the conversations held in the discord, community members would appreciate a yield-bearing stablecoin.

I’m a fan of exploring/considering making this a brand new product - perhaps minimizing it to the top 3 most used stablecoins (USDC, USDT, DAI) and then expanding as the community sees fit(?).

1 Like

I like that minimized approach for a new product Guzman_MassAdoption, sounds cleaner

1 Like

Looking at it from a crypto noob perspective. I got into crypto 7 months ago with BCP and PLAY being my very first DeFi investments. The purpose and strategy was easy to understand on the site. When I looked at the USD++ page with no APY or ‘strategy’ listed I scratched my head and wondered what the purpose of this was. Hence with the crypto crash I’ve parked my stables at Vesper because it was clear to me what I was getting. I’m not being critical just pointing out the UI needs to be clear for us uninitiated. Thanks.

3 Likes

A snapshot vote is now up, further to the result of this poll
https://snapshot.org/#/piedao.eth/proposal/0xa8e4177b742199d2b9356f0e8b5b34713123a83ccac853a6eb6d62ea1a2c76d1

1 Like

As part of the Product Refinement Initiative, we’d like to announce the schedule towards the USD++ product decommissioning as per the passed [PIP-72].

:spiral_calendar: Schedule
:small_orange_diamond: Decommissioning: Effective Now
:small_orange_diamond: Social Exit: **Starts:**March 4th / **Ends:**Apr 4th

:hammer_and_wrench: Decommissioning
:arrow_right: PieDAO has cease the following activities for USD++: Re-balancing, LP incentives and liquidity provisioning, Marketing & Listing within active PieDAO offerings.
:arrow_right: The deprecated product and all it’s site functions will remain being available at legacy.piedao.org. Holders can use that site to redeem their underlying assets.

:fire: Social Exit

  • USD++ holders can opt to send their tokens to the multi-sig address for PieDAO to collect, redeem, swap and send back an equivalent $value in ETH. A 2% fee will be applied as partial compensation for the gas cost incurred.
  • Funds will be collected starting March 4th until Apr 4th. ETH will be distributed on Apr 5th.
  • USD++ $value will be defined at Apr 4th end of day, as the 3 days average of the USD++ NAV (Net Asset Value)
  • Multi-sig address: 0x6458A23B020f489651f2777Bd849ddEd34DfCcd2

:roll_eyes: TL;DR

  • USD++ maintenance is effectively terminated
  • A social burning strategy is running and will be over executed in 30 days
  • All USD++ related functionality will remain available at legacy.piedao.org

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