dTRINITY Launches Subsidized Stablecoin Lending Protocol on Fraxtal L2
Singapore, Singapore, December 18th, 2024, Chainwire
dTRINITY, a next-generation stablecoin liquidity protocol, has announced its mainnet debut on the Fraxtal L2 network. The platform is designed to lower interest expenses and improve yields for stablecoin users, addressing the key challenge of rising credit costs in DeFi.
At the core of dTRINITY is a protocol-native stablecoin (dUSD), which serves as the unified liquidity layer between its money markets (dLEND, an Aave v3 fork) 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 yieldcoins like sFRAX and sDAI. Exogenous yields from the reserve are redirected to fund ongoing interest rebates for dUSD borrowers on dLEND, based on their outstanding debts, which reduces the effective borrowing cost. This mechanism not only stimulates borrowing demand but also drives more sustainable utilization and yields for dUSD lenders.
dTRINITY is launching 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, robust network security, and unique blockspace rewards, further enhancing their benefits.
In the near future, dTRINITY plans to expand to Ethereum and other emerging blockchains, strengthening cross-chain liquidity and interoperability with Fraxtal as the network scales.
Key Features of dTRINITY:
- Subsidized Interest Rate Model: dTRINITY’s innovative subsidized interest rate model lowers the equilibrium of stablecoin borrowing costs on dLEND vs. other protocols without impacting lending yields. In fact, rebates 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 (in both points and tokens) for supplying and bolstering liquidity in the ecosystem.
- Security & Risk Management: dTRINITY has successfully completed smart contract audits with three leading blockchain security firms: Halborn, Verichains, and Cyberscope. Additionally, the protocol disables rehypothecation of supplied collateral by default to minimize risk exposure. dUSD is the only borrowable asset on dLEND and it cannot be borrowed against itself.
- Strategic Partnerships: In addition to Frax, dTRINITY also plans to collaborate symbiotically with other major DeFi protocols. First, dUSD can be expanded to other lending platforms (e.g., Fraxlend, Morpho), providing their users with similar subsidy benefits. Secondly, dUSD can serve as a cheaper medium of leverage for loopers using other stablecoins/yieldcoins (e.g., Ethena, crvUSD), increasing demand for both projects. Furthermore, the dUSD reserve’s composition will be diversified over time, opening up potential partnership opportunities with more stablecoin/yieldcoin projects.
dTRINITY’s core contributors include the co-founders of Stably. The project has been in development since Q2 2024 and secured 1st place at both 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, bringing a wealth of expertise from leading stablecoin and DeFi pioneers to the protocol’s development.
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, the USA, the 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 potential for 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 enhance yields for stablecoin users in DeFi. The protocol is powered by dUSD, a decentralized stablecoin backed 1:1 by an on-chain yieldcoin reserve. Exogenous yields from the reserve are used to fund ongoing interest rebates for dUSD borrowers, lowering their effective borrowing rates. dTRINITY is now live on the Fraxtal L2, and it will be expanded to Ethereum plus other networks in the future.