Elixir Synthetic Dollar deUSD Launched With $1 Billion Liquidity Support

Key Points:

• Elixir introduces deUSD, a new synthetic dollar asset, to compete with Ethena Labs’ USDe, offering a decentralized and fully collateralized alternative.
• Elixir synthetic dollar deUSD is backed by stETH and allows stakers to earn additional yields through liquidity incentives, with a focus on stability even during extreme market conditions.
• The project has secured $1 billion in liquidity for deUSD and has accumulated over $300 million in total value locked through its Apothecary program.

Modular blockchain project Elixir has announced that it launched its synthetic dollar asset called deUSD. This new offering will look to take on USDe, offered by Ethena Labs, as it seeks to provide a decentralized competitor in the stablecoin world.

Read more: Ethena USDe Custodian Certificate Shows Skyrocketing Asset Value

Elixir Synthetic Dollar deUSD to Challenge Ethena’s USDe

Ethena Labs’ USDe is stabilized through the operation of arbitrage and yield-returning strategies, which are collateralized by crypto assets and delta-hedged. It is enacted in a decentralized finance framework but ultimately needs centralized exchanges and custodians to handle its collateral.

According to The Block, Elixir synthetic dollar deUSD is always fully collateralized by stETH and is used to short ether in a delta-neutral position. In this design, additional yields granted for liquidity provisioning could be captured by the deUSD stakers.

The team behind this project focuses on the fact that the Elixir synthetic dollar genuinely decentralizes and is a non-custodial alternative with verifiable execution and open-source code, in contrast to USDe’s reliance on centralized systems.

Elixir Locks in $1 Billion in Liquidity Ahead of Mainnet Launch

Elixir says that deUSD will remain stable, even in times of extreme market volatility. The project has $1 billion in liquidity lined up for the new token, with some high-profile support from DeFi platforms, including Pendle, which is building a market for Elixir’s Apothecary initiative. That’s a system designed to track user contributions and reward participation based on points.

Since its going live in March, the Apothecary program by Elixir has accrued over $300 million in total value locked, excluding the $1 billion set aside for deUSD. The project is racing toward what could be the highly anticipated mainnet launch of deUSD in September.