as we embark on the creation of Vaya, our philosophy remains our focus. However, the landscape of tools within the Reserve Rights protocol necessitates a strategic recalibration of our initial collateral structure.
While Vaya could start with a collateral mix that may appear distinct from our fundamental philosophy, this strategic decision could allow us the time and space to forge partnerships and amplify Total Value Locked (TVL). Nevertheless Vaya will further distinguish from other existing stablecoins when new tools are created. The chosen collateral backing strikes a careful balance, effectively blending the strengths of hyUSD’s positives with the safety inherent in eUSD. Future versions are striking to get an even better balance between the risk and reward ratio like mentioned in the previous article. Vaya will remain true to this philosophy even if the tools are very limited at the beginning. However, this should not mean that Vaya overlaps with the philosophy of other Rtokens, even if it looks that way at first glance.
Diverse Collateral: The Prelude to Differentiation
Our preliminary collateral matrix mirrors this approach:
25% Allocation to Stargate
25% Allocation to Maker’s DAI
25% Allocation to saUSDC or fUSDC
25% Allocation to Convex/Curve eUSD+FRAXBP Pool
Philosophy Unchanged, Strategy Adaptive
Our philosophy remains constant, echoing our commitment to financial inclusivity. While our initial collateral backing may differ, this is a strategic stepping stone toward further differentiation from stablecoins like hyUSD and eUSD.
A Vision Shared: Join the Journey
We invite you to join us on this journey. Your insights and feedback will shape Vaya’s trajectory as we adapt, evolve, and differentiate ourselves to become a beacon of stability and innovation.
Do you plan to deploy Vaya on Base? The reason I ask is that the collateral that may be available on Base may not be what is available on mainnet Ethereum. Meaning that you may need to again deploy with new collateral options on Base. I don’t see the issue any issues with Base Vaya having different collateral, however it would be important to note that the Base deployment of Vaya would be much cheaper in terms of gas costs. So perhaps there is an option to deploy Vaya only on Base?
These are things I would consider if I were in your shoes.
Good point raised by Braden! Do you have an alternative basket proposed for base-native assets? I remember reading some discussion about this by @0xTomSawyer surrounding whether or not he would bridge hyUSD to base or mint it with different collateral - perhaps he has some insight?
Nevertheless, good proposal and thank you for your contribution @Veganiel!
Great proposal @Veganiel I like the collateral that you chose. I am curious as to what yield mechanism within Stargate you propose adding. From my point of view I do not think I would propose a cross chain bridge protocol in the basket for hyUSD. I believe bridges are too risky and have been subject to a significant amount of attacks throughout crypto(Recent Bridge Hacks). Stargate has done extensive audits but I think more audits are necessary given the history of how bridges have been exploited throughout recent history(Stargate Audits).
Yes, High Yield USD will be deployed on Base. Given whats available today, the basket would probably look like the following: 50% Compound USDC and 50% AAVE USDC with the same revenue distribution(81/16/3). When High Yield USD is deployed on Base, since there are currently very few options, we expect rapid iterations of the collateral basket as more collateral options become available.
Our main focus right now is bringing down the risk profile of High Yield USD. There are discussions ongoing regarding our recent proposal. We are revisiting the Morpho USDT pool as there may be something safer and provides the same if not better yield.
Not yet as I don’t know which new collateral plugins I could use on base. Sadly I don’t even know when the launch is roughly expected. Nevertheless I would be more than happy to get valuable suggestions for the possible collateral backing on base and which new options will be available there.
I am grateful for your perspective on this matter! This has prompted me to reevaluate the chosen (possible future) collateral backing, especially given the fact that the suggested form of backing is not inherently aligned with the principle of safeness that Vaya seeks to embody. In its initial stages, Vaya aims for a high degree of flexibility, with gradual adjustments intended to refine its alignment with the original philosophical underpinnings.
However, because of your feedback I will think again if it makes sense to add stargate once its available. This is a suggestion I will seriously consider, as it could hold potential to enhance the overall robustness. I am even contemplating the possibility of an expedited release of Vaya, potentially integrating the following collateral distribution:
0.25 saUSDC
0.25 saDAI
0.25 cUSDT
0.25 stkcvxeUSD3CRV-f
And overtime changing the composition (for example adding Makers DAI)
Revenue:
Holders: around 62%
Stakers: around 35%
The rationale behind this approach is to establish a secure foundation upon which I can embark on the developmental journey of Vaya. In the initial phase, this arrangement serves as a prudent and secure alternative. As new opportunities unfold and evolve, I will recalibrate the strategy as elucidated within the previous articles.
