Elixir's deUSD: A Synthetic Dollar Challenger to Adena's USDe

Elixir's deUSD: A Synthetic Dollar Challenger to Adena's USDe

## Elixir Introduces deUSD to Compete with Adena's USDe Decentralized finance (DeFi) platform Elixir (ELX) has unveiled deUSD, a synthetic dollar stablecoin designed to rival Adena (ENA)'s popular USDe. ## Similarities and Differences Both deUSD and USDe aim to maintain a stable value of one dollar through full collateralization. However, they employ different approaches. - USDe relies on arbitrage and cash-and-carry mechanisms, as well as delta hedging with cryptocurrency collateral. - deUSD utilizes stETH as collateral for short (short selling) positions on Ethereum (ETH) while maintaining delta neutrality. ## Revenue Generation for deUSD Stakers Elixir claims that deUSD stakers can earn additional revenue through incentives from liquidity providers on exchanges. ## Liquidity and Support Elixir has secured $1 billion in liquidity to support deUSD. This is significant as liquidity is crucial for stablecoins to maintain their peg. ## Conclusion Elixir's deUSD is a new challenger in the stablecoin market. Its synthetic dollar approach and revenue-generating mechanism make it a competitor to Adena's USDe. The availability of liquidity support further enhances its credibility. It remains to be seen how deUSD will fare against USDe and other established stablecoins in the long run.