aUSD Stablecoin
aUSD is a LSD backed interest bearing stablecoin protocol deployed on Sepolia Testnet.
Created on 28th August 2023
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aUSD Stablecoin
aUSD is a LSD backed interest bearing stablecoin protocol deployed on Sepolia Testnet.
The problem aUSD Stablecoin solves
At present, stablecoins in the cryptocurrency domain can be categorized into three types: Fiat-Collateralized stablecoins, Cryptocurrency-Collateralized stablecoins, and Algorithmic stablecoins.
Stablecoins generally differ in terms of the assets backing them, collateral ratios, issuance mechanisms, and price maintenance mechanisms. While various stablecoins may be suitable for different application scenarios, they all share one common shortcoming: the lack of interest income.
Does this imply that stablecoin holders do not require interest income? Certainly not.
However, since stablecoins do not generate interest, their holders have no choice but to bear the continuous depreciation of the USD due to the Federal Reserve's high interest rates caused by inflation. This is where our solution aUSD stablecoin come into picture. It is a Liquid Staking tokens backed stablecoin (backed by stETH, ETH) offering interest to holders of aUSD.
Yield comes from liquid staking tokens is distributed among aUSD minters based on their share of total aUSD tokens minted.
Challenges we ran into
Initially it was difficult to understand the working of a collaterialized stablecoin. After researching and learning from docs and some of the projects, we finalized what we were going to build.
Given the requirements of the hackathon, we were required to build frontend using BOS components on near. It was not mkost challenging task but testing of components and not having worked with such infrastructure took a little time for us.
Overall our experience working with BOS was good but there are still scope of improvements to make local setup much easier so that import feature can be tested for components in local IDEs. Working in online IDE was good but we think this was the feature which it lacked and can be worked upon in future.
We faced issues with deploying BOS components on NEAR. We had to combine all components in one as deploying more components was getting time consuming. This made BOS component around 38 kb and more than 15 transactions failed while trying to deploy :(
We found a way around in which we changed code of predeployed BOS component and tried deploting it and it worked 😃.
That's why final component is on widget/Lido (which we deployed to fork and play with Lido component) and not widget/aUSD (this was initially where we planned to deploy 🥲)
Anyways, both of us loved working with the tools and chain and have roadmap for improving our projecta nd our vision is to convert this to fully functional credit lending platform with LSD backed stablecoin. Hope to get support in acheiving this vision for our project :)
Tracks Applied (3)
Frontend & BOS Tools
Proximity Labs
DeFi
Ref Finance
Native Prizes
NEAR Foundation
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