This project is a grouping of several dependency projects that are required to have first-class support for USDS and sUSDS on all popular chains. Demand for DSR access has increased dramatically since the rise above 5%, and it is our goal to position sUSDS as the savings account for DeFi.
To be the savings account you have to do a number of things beyond just bridging the token through the canonical bridge. You must also provide fast bridging and excessive liquidity on each chain to ensure that users can enter or exit exactly when they want. This means sUSDS needs to be as liquid as possible with the popular stablecoin on the chain. Usually this will be USDC, but in some cases USDT.
The goal is to have the same effective levels of liquidity that DAI has with USDC on mainnet. This means ample idle liquidity with no slippage (aka PSM 1:1 swaps). As such DEXs and third-party liquidity are not sufficient to achieve this.
The Maker Core dev team will be doing the basics of a token launch on a few chains, but the fast bridging solution is left up to SubDAOs to hook in a bridge. First draft details are here: https://hackmd.io/Lc0DOLHOQjSNlV4JH44nng. Full technical doc will be released soon.
Throughout this document, we use the term “Canonical Bridge” to refer to the bridge that represents admin access on each chain. This is the bridge where we place existential trust for Maker’s presence in other chains. In the case of L2s this is always going to be the native bridge as this bridge has the same security as the rollup itself. In some cases the canonical bridge is anointed by the chain such as in the case of Polygon PoS (Polygon Bridge) and Gnosis Chain (AMB/Omnibridge). In these cases the vast majority of the assets from Ethereum have been bridged through these bridges and so we can assume if they fail, the chain has failed.
When we have L1 → L1 communication, the canonical bridge is much less clear and will be determined on a case-by-case basis. In any case, security should be optimized for with canonical bridges and not settlement speed. Slower and safer is better.
We use a fast bridging solution to move USDS/sUSDS between chains which is not necessarily the same as the canonical bridge.
An automated controller will ensure just-in-time liquidity across all chains. Any idle USDC will be moved to Ethereum Mainnet, where it will be deployed into the USDC yield-generation strategy.
The goal is for users to feel like sUSDS is as liquid as USDC but still gets a composable, relatively safe yield. For Maker, this allows more demand for USDS, which can be sustained at scale. Users should be incentivized to deposit all their idle USDC on every chain into sUSDS.