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