DFP-59: Add Flat Money UNIT as an Integration

Header Content
Author Edson Ayllon (@relativeread)
Created 2024-05-01
Status Draft

Motivation

UNIT is a novel yield earning stablecoin called a flatcoin. Minting and burning UNIT will provide dHEDGE managers with a novel way of earning yield with different risk profiles of existing yield sources on dHEDGE, as well as higher yield potential in bullish markets.

Description

Flat Money is a protocol with a two sided market, flatcoin holders and leverage traders. Today, it uses rETH as collateral for the flatcoin and to leverage trade, reducing external dependencies while using a more capital efficient form of ETH.

The yield source of UNIT comes from providing liquidity to leverage traders. Leverage traders in Flat Money leverage up a staked version of ETH with its own APY on ETH, offsetting funding costs of borrowing ETH to leverage trade. UNIT captures both the borrowing interest rate as well as trading fees from opening positions.

This proposal deal with UNIT minting and burning only, not the leverage trading yet. A separate proposal must be made for leverage trading.

Implementation

Contract guards will be designed to whitelist minting and burning of UNIT.

Vote

Vote pending