Singapore, Singapore, December 18, 2024, PakGazette
dTRINITY, a next-generation stablecoin liquidity protocol, has announced its mainnet debut on the Fraxtal L2 network. The platform is designed to reduce interest expenses and improve returns for stablecoin users, addressing the key challenge of rising credit costs in DeFi.
At the core of dTRINITY is a protocol’s native stablecoin (dUSD), which serves as a unified liquidity layer between its money markets (dLEND, a fork of Aave v3) and external liquidity pools (e.g. Curve). dUSD is backed 1:1 by an on-chain collateral reserve consisting of stablecoins such as USDC, FRAX, and DAI, as well as yield coins such as sFRAX and sDAI. Exogenous returns from the reserve are redirected to fund ongoing interest repayments for dUSD borrowers on dLEND, based on their outstanding debts, reducing the effective cost of borrowing. This mechanism not only stimulates borrowing demand but also drives more sustainable utilization and returns for dUSD lenders.
dTRINITY launches on Fraxtal as its genesis network in a strategic collaboration with Frax to optimize ecosystem liquidity and user incentives. Fraxtal is an EVM equivalent rollup with a scalable smart contract platform and efficient execution environment powered by the OP stack. Users can take advantage of Fraxtal’s fast transaction speed, low gas fees, strong network security, and unique block space rewards, further enhancing their benefits.
In the near future, dTRINITY plans to expand to other emerging blockchains, strengthening cross-chain liquidity and interoperability with Fraxtal as the network scales.
dTRINITY Key Features:
- Subsidized interest rate model: dTRINITY’s innovative subsidized interest rate model reduces the balance of stablecoin borrowing costs on dLEND versus other protocols without affecting loan yields. In fact, repayments at low utilization levels could even result in negative interest rates for dUSD borrowers (i.e., borrowers could get paid to borrow).
- Liquidity Incentives: dUSD lenders and liquidity providers benefit from a combination of protocol rewards and external incentives from strategic partners (both points and tokens) to supply and bolster liquidity in the ecosystem.
- Security and risk management: dTRINITY has successfully completed smart contract audits with three leading blockchain security companies: Halborn, Verichains, and Cyberscope. Additionally, the protocol disables remortgaging of provided collateral by default to minimize risk exposure. dUSD is the only lendable asset on dLEND and cannot be borrowed against itself.
- Strategic Alliances: In addition to Frax, dTRINITY also plans to symbiotically collaborate with other major DeFi protocols. First of all, dUSD can be expanded to other lending platforms (e.g. Fraxlend, Morpho), providing its users with similar subsidy benefits. Secondly, dUSD can serve as a cheaper means of leverage for loopers using other stablecoins/yieldcoins (e.g. Ethena, crvUSD), increasing demand for both projects. Additionally, the composition of the dUSD reserve will diversify over time, opening up potential partnership opportunities with more stablecoin/yieldcoin projects.
Top contributors to dTRINITY include the co-founders of Stably. The project has been in development since the second quarter of 2024 and took first place at the ETHVietnam and Fraxtal Hackathons earlier this year. Strategically, dTRINITY is advised by the co-founders of Frax, Convex, Sky (formerly MakerDAO), Coin98 and Promontory Partners, who bring extensive experience from leading stablecoin and DeFi pioneers to the development of the protocol.
For more information, users can visit dtrinity.org and follow @dTRINITY_DeFi on X.
Disclaimer: dTRINITY is not available to residents of Belarus, Canada, Cuba, Haiti, Iran, Myanmar, North Korea, Russia (including Crimea), Somalia, South Sudan, Syria, US, UK, Venezuela and other prohibited jurisdictions . The information contained herein should not be considered legal, business, financial or tax advice. Past performance is not indicative of future results. Digital assets and DeFi protocols carry significant risks, including the possibility of loss of funds. Users should conduct their own research and seek professional advice before interacting with digital assets and DeFi protocols.
About dTRINITY
dTRINITY is the world’s first subsidized lending protocol, designed to reduce borrowing costs and improve returns for stablecoin users in DeFi. The protocol is powered by dUSD, a decentralized stablecoin backed 1:1 by an on-chain currency yield reserve. Exogenous reserve returns are used to finance ongoing interest repayments for dUSD borrowers, reducing their effective borrowing rates. dTRINITY is now available on Fraxtal L2 and will expand to Ethereum and other networks in the future.
ContactMain contributorKory HoangTrinidad Foundation Ltda[email protected]
