What's in this article
DEUS Finance is evolving into a decentralized derivates clearinghouse. A protocol enabling 3rd-parties to build financial instruments, providing infrastructures such as secure, high-speed oracles, plug-and-play modules, access to a cross-chain collateralization system, and much more.
The first stepping stone in this evolution will be the release of DEUS Finance V2 Apollo. This release introduces a new stablecoin, DEI, along with new yield farms. In time, DEI and the yield farms will exist on many chains, however, aside from Ethereum, Polygon has been chosen as the chain of choice to launch on.
What is DEI?
DEI is a fractional reserve cross-chain stablecoin. Its composition is roughly 80% of a popular stablecoin (e.g. USDC) and 20% $DEUS. This ratio is dynamic and is updated every minute.
What makes DEI unique is that it is fully cross-chain in nature. Users will have access to a low-risk stablecoin that they can move between chains with one unified bridge, as opposed to having to use a different bridge for every chain.
What problems does DEI solve, and how?
DEUS Finance has set out to create a solution that provides liquidity across chains. Essentially, users should be able to transfer a stable to Polygon, or any other chain, with one bridge, and with little to no slippage. A bridge is of no use if there is no liquidity on the other side.
This liquidity is achieved in two ways. Firstly, due to DEI’s free-flowing composition, users can always redeem DEI for $1 by tapping into the currently existing stablecoin liquidity of external protocols. Additionally, users are incentivized to add to this liquidity by providing their own through yield farms that will reside on all chains within the DEUS Finance ecosystem.
Polygon users will be able to choose between the following two pools.
Stablefarm – 50% APY, Zero Impermanent Loss
This is the low-risk, zero impermanent loss pool. The LP tokens are created using two stables, USDC and DEI. DEI, on Polygon, consists of roughly 80% USDC, meaning the pool itself is almost entirely USDC.
DEUS/DEI Pool – 100% APY
This is for users who wish to invest further in the DEUS ecosystem. This pool has a reward multiplier of 2x over the stablefarms but can be deemed riskier due to potential impermanent loss.
Polygon is the first well-structured, easy-to-use platform for Ethereum scaling and infrastructure development. Its core component is Polygon SDK, a modular, flexible framework that supports building and connecting Secured Chains like Plasma, Optimistic Rollups, zkRollups, Validium, etc, and Standalone Chains like Polygon POS, designed for flexibility and independence. Polygon’s scaling solutions have seen widespread adoption with 450+ Dapps, 350M+ txns, and ~13.5M+ distinct users.
If you’re an Ethereum Developer, you’re already a Polygon developer! Leverage Polygon’s fast and secure txns for your Dapp, get started here.
About DEUS Token
The above yield farms create the required liquidity to bridge DEI from any chain to Polygon with no slippage. For providing this liquidity, users are rewarded with $DEUS.
$DEUS is the main protocol and governance token of the DEUS Finance ecosystem. Considering the fact that DEI is fractional, with a portion of its collateral comprised of $DEUS, there is a direct benefit for DEUS token holders for every DEI that is created, as it burns the DEUS token supply.
Additionally, the financial instruments that will be built on DEUS Finance will all utilize DEI as their collateral mechanism, further expanding the exposure of $DEUS.
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