Whitelisting the EmptySet DAO as a Fuse pool creator, this will enable the creation of Fuse pools that use EmptySet assets for lending/borrowing
Address to be whitelisted: 0x750eb0759F56a55cF0bb528fe4EFc6f8cFd27C56
Introducing Empty Set v2
The Empty Set protocol issues the DSU stablecoin against collateral. However, there are fundamental design decisions that make DSU unique.
- Is composed of a USDC basket which is staked in widely adopted money markets protocols, and backs DSU 1:1.
- Is 100% collateralized, as all reserve assets are stablecoins.
- It grows continuously by harvesting yields on money markets
The stablecoin: $DSU
Is freely redeemable for its underlying collateral assets.
Is freely mint-able from the Empty Set reserve.
The governance token: $ESS
ESS, the protocol's governance token, can be used to vote or make governance proposals for the protocol.
It also serves as a seigniorage share and collateral backstop for the protocol (in the cases where extenuating circumstances would make DSU lose its peg).
The core value proposition of Fuse is creation of lending markets for long tail assets. The EmptySet suite of tokens represent an ideal target because they aim to be held by exosystem DAOs and be widely distributed across the ecosystem,
Borrowing/Lending EmptySet tokens will increase protocol utilization as well as attract capital to the Rari ecosystem
DSU Smart Contract Risk:
DSU utilises the Empty Set V2 smart contracts which have been audited by OpenZeppelin and the Compound Protocol which has been audited & formally verified.
DSU Counterparty Risk:
- DSU is a product whereby holders of DSU are IOU holders of a 1:1 claim on the underlying USDC held by the protocol on their behalf inside the Compound Protocol.
- Since individual holders cannot be blacklisted when their assets are staked in a money markets protocol, it could be argued that DSU is more trustless & censorship resistant than its underlying USDC collateral, and thereby has less counterparty risk.
- ESS holders have the ability to propose changes to the operation of the protocol, changing collateral, money market etc. However these changes are subject to queuing, voting and commit periods which equal roughly 7 days.
- Important to note that ESS holders do not have the right to unilaterally mint/burn DSU
- The Empty Set treasury signers include prominent & trustworthy members of the DeFi community such as Andrew Kang, Dan Elitzer, Linda Xie, and Niraj Pant.
- Empty Set’s v1 (Empty Set Dollar) has over 2,000 holders as of July 19th, 2021, this wide market participants distribution will be inherited by the governance token ESS, which will help further decentralize the protocol and align it with the community.
DSU Market Risk:
- Since there will always be a 1:1 backing between DSU & the underlying stablecoin, we estimate that DSU’s market risk will be roughly the same as that of the underlying stablecoin USDC (Which is listed on Cream). In addition to acting as a seigniorage share and governance token, ESS can backstop the reserve for the protocol during extenuating circumstances, like an exploit or a bug, where the ratio may drop below 100%.
- USDC is a US based “stablecoin” issued by the Centre Consortium, is backed by Circle & Coinbase.It is widely considered a standard in compliance & transparency (see recurring audits of its USD backing reserves).
- USDC supply grew from 522M$ on Jan 1st 2020 to 26B$ in July 2021, that's close to a 5000% increase in a little over 18months.
- The project stands as the 2nd largest stable coin by market cap in the Ethereum ecosystem, and represents 33.55% of all minted stablecoins at the time of writing.
Empty Set strongly believes that DeFi protocols should own the primitives they are building on top, and wants DSU to be governed by the DeFi community.
Empty Set will distribute 15% of the ESS supply to ecosystem partners that will work to make the protocol succeed. Additionally, the DeFi community and other protocols will also be active participants in the governance of DSU. We believe that, by aligning key partners, the DeFi community and other protocols, DSU will always be governed with the proper incentives in place to be aligned with the DeFi community.
With that said, with Rari being part of the first batch of protocols to integrate with EmptySet, we are awarding a grant of 7,500,000 ESS to the Rari DAO through which you could participate in EmptySet governance if the RGT token holders choose to do so. These tokens will be vested linearly over a period of 18months.
Tokens / Pools
DSU Token Address
ESS Token Address
ESD (Old) Token Address
Social / Community