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Duet Protocol
  • Duet Protocol
    • Introduction
    • Overview
  • Value Propositions
    • Liquidity Providers
      • Liquidity Providers
      • Market Makers
    • Investors
      • Crypto Investors
      • Traditional Investors
    • Third-Party DeFi Protocols
  • Token Economics
    • What is the Duet Token
    • Utilities of DUET Token
    • Token Distribution
    • Governance
  • Functions & User Guides
    • Stablecoin Minter
      • Wallet Configuration
      • Mint dUSD
      • Redeem dUSD
    • Earn
      • Earn User Guide
    • dAssets
      • dAssets User Guide
    • Farm
    • $bDUET
      • Overview
      • How to calculate the value of a $bDUET
      • Duet Open Bond Market
      • Yield to Maturity and Yield Curve
      • Bond As A Service
  • Synthetic Assets
    • dUSD
    • dWTI
    • dXAU
    • dBonds FAQs
  • Roadmap
  • Glossary
  • DUET PRO
    • Architecture
    • DPMM (Proactive Market Making)
    • External Custody
    • Funding Fee
    • Leverage
    • Margin Requirement
    • Mining (AMM Liquidity Mining)
    • List of Markets
  • Library
    • List of Markets
    • Terms of Service
    • Cookie Policy
    • Privacy Policy
    • Contract addresses
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  • Whitelisted Stablecoins
  • Fees
  • Circuit Breaker

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  1. Synthetic Assets

dUSD

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Last updated 3 years ago

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Duet US Dollar (dUSD) is a synthetic stablecoin whose value is pegged to USD through over-collateralization.

Name (SYMBOL): dUSD (DUET USD)

Binance Smart Chain (BEP-20) contract address:

There are two ways a dUSD can be minted---through the over-collateralization minter or the Stablecoin Minter.

With the Stablecoin Minter, users can mint dUSD with whitelisted stablecoins (currently BUSD & USDC) at a rate close to 1:1.

With the Over-Collateralization Minter, users can mint dUSD with any supported asset at corresponding collateralization ratio.

With every dUSD minted, Duet protocol reserves more than 1 USD worth of assets to support its value. Thus the value of dUSD will always be equal to 1 USD.

Whitelisted Stablecoins

Stablecoin market is extremely competitive, legacy projects like USDT, DAI, USDC are competing with new stablecoins like UST as well as potentially with CBDCs in the future.

Despite their claim to be stable and value-backed, Duet governance will rate the stable coins similar to how bonds are rated by agencies, only AAA rated stable coins will be whitelisted to generate dUSD with 100% utilization rate, while others can be used to generate dUSD using a over-collateralization method

Fees

Duet charges 0.2% fee whenever a dUSD is minted or redeemed.

Circuit Breaker

Although Stablecoin minter only accepts whitelisted stablecoins, situations might arise where a whitelisted stablecoin lost its peg to US dollar.

When the value of a whitelisted stablecoin falls below 0.98 USD, a circuit breaker is triggered, so that users can no longer mint dUSD with that stablecoin with the stablecoin minter.

The circuit breaker protects the peg of dUSD to USD during extreme events where a whitelisted stablecoin significantly deviates from its peg.

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