USDFI - The revolution will not be centralized.
  • USDFI Working Paper
    • Abstract
    • Introduction
      • Custodial Stablecoins
      • Non-custodial Stablecoins
    • USDFI Design
      • Introduction
      • The Decentralized Stablecoin Trilemma
      • Design Considerations
      • Financial stability: AMOs, BLR, AMMLR & The DeFi Trinity
    • USDFI Stability Mechanisms
  • Dual ve-tokenomics
    • Introduction
    • Liquidity Incentivization
      • Curve Finance
      • Olympus DAO
      • Zero-sum, ve and ve(3,3)
      • Dual-ve model
    • Analysis of dual-ve
  • USDFI: The protocol for protocols
    • How to get deep liquidity for your token
    • Problem: Bootstrapping your liquidity
    • Solution: USDFI P4P
  • USDFI explained in 120 seconds
    • Vision
    • Dual-ve tokenomics
    • STABLE/veSTABLE
    • USDFI/veUSDFI
  • USDFI AMM
    • Understanding Automated Market Makers
      • How-to execute a token swap
        • Token prices
        • Price Impact
        • Price Slippage
        • Price Impact vs Slippage
      • Understanding liquidity pools
      • vAMM vs sAMM
      • Understanding AMM users
    • Understanding USDFI's AFSA-Shield
    • Becoming a liquidity provider
      • Whitelisting
      • Dynamic pool fees for partner protocols
    • Understanding USDFI Pools
    • Understanding the USDFI Router
  • USDFI Money Markets
    • Peer-to-Pool Money Markets
    • Lending vs Liquidity
      • Lending
      • Borrowing
      • Liquidiations
      • Advanced Money Market Strategies
      • Contracts
    • Security
      • Token Report (BSC)
  • USDFI Stablecoin
    • Minting
    • Understanding the Minter
  • USDFI Money Legos
    • Introduction
    • Protocols
      • Thena
    • Risks
  • Security
    • About Chainsecurity
    • Audits
    • Contracts
  • More USDFI
    • The USDFI vision
    • Roadmap
    • Tokenomics
    • Pitch Deck
  • GETTING STARTED
    • Connecting a wallet to USDFI
    • Switching networks
    • What's a wallet address?
    • Getting a crypto wallet
    • Understanding Networks and Layers
    • Understanding Layer 2
    • Understanding transaction hashes
    • Understanding approval transactions
    • Network Fees
    • Buy Crypto
      • Credit Card
      • Bank transfer
  • AFFILIATES
    • How to become an USDFI affiliate
  • Brand assets
    • SVGs
  • FAQ
    • General questions about USDFI
    • How is USDFI different from...
    • Questions about the USDFI ecosystem
    • Terms of Use / Legal information
    • Where to find more information
    • Security and audit
    • The most important question
  • LINKS
    • Twitter
    • Discord
    • Telegram
    • Github
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On this page
  • …Curve Finance?
  • …Convex?
  • ...Uniswap V2?
  • …from Yearn Finance?
  • …from MakerDAO and DAI?
  • …from Solidly?
  • …from AAVE?
  • …from Balancer?
  • …from Compound?
  1. FAQ

How is USDFI different from...

…Curve Finance?

Curve Finance maximizes for efficiency around stableswaps. USDFI maximizes for efficiency around the synergies of having liquidity, lending and stablecoin in one place.

…Convex?

Convex is a yield optimizer for the Curve protocol with its own CVX token. In very short, CVX token holders can be bribed to vote reward liquidity providers with more rewards. The same compelling mechanism is built directly into the USDFI layer already for a more seamless experience.

...Uniswap V2?

Uniswap is DeFi’s original, foundational liquidity layer and AMM protocol. While USDFI technically offers the same AMM, it rewards liquidity providers with the protocol’s STABLE token emissions and its governing members with trading fees. This prioritizes fee generation over liquidity provision for a more sustainable ecosystem. Also, there is no native stablecoin or money market available on the Uniswap protocol.

…from Yearn Finance?

Yearn Finance is a DeFi yield farming optimizer. The protocol socializes gas costs, rebalances and allocates automatically for selected tokens. USDFI’s Money Legos provide a streamlined UI-Layer for selected protocols, where you can de-risk, lock-in, or boost your APY’s by having your reward tokens automatically converted to USDFI.

…from MakerDAO and DAI?

DAI is a stablecoin that is collateral-backed and maintained through a system of smart contracts. Users can generate DAI by depositing a stable or widely used cryptocurrency, such as USDC and Ethereum, into the MakerDAO system as collateral. DAI collateral consists of mostly USDC, a highly centralized custodial stablecoin, greatly limiting scalability and decentralization. In contrast, the USDFI stablecoin design can have a treasury with up to 100% decentralized, volatile cryptocurrencies and has no limitations on scalability. The trade-off is a softer peg.

…from Solidly?

Solidly launched as a very popular DEX on the Fantom chain and sported smart AMMs for correlated and uncorrelated assets; with a novel governance system called ve(3,3). Solidly ultimately proved to be unsuccessful due to a combination of various factors, including hyperinflationary tokenomics, incorrect assumptions regarding game theory, and the absence of a protocol-based risk management mechanism. In contrast, USDFI’s follows Uniswap’s and Curve Finance’s AMM designs, but with reengineered tokenomics, voting and bribing mechanisms. The novel dual-veToken design integrates seamlessly with the whole USDFI ecosystem, its game theory, and incorporates automated protection protocols.

…from AAVE?

AAVE is a decentralized non-custodial money markets platform. It allows users to deposit and lend out various cryptocurrencies and stablecoins, earning interest in return, similar to USDFI. However, it does not offer liquidity, ve-Token governance, a native stablecoin, or Money Legos.

…from Balancer?

Balancer is a decentralized AMM protocol. The main function of Balancer is to provide a platform for the creation and management of multi-asset liquidity pools with up to 8 tokens. Creating positive a feedback loop with swaps only is very challenging. This is because there is a lack of avenues to generate income through borrowing and lending of assets (available in USDFI) or to leverage tokens for greater capital efficiency.

…from Compound?

Compound is very similar to AAVE, but differs in various technical aspects (flash loans, liquidation, penalties, LTVs etc.) Please see AAVE.

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Last updated 2 years ago