Introducing the world’s first subsidized stablecoin lending protocol, designed to reduce borrowing costs and enhance yields for DeFi users.
dTRINITY is a novel on-chain replication of the US Federal Reserve central banking system ("Fed"), operating under a decentralized and community-governed framework ("DeFed"). Unlike the Fed, however, dTRINITY utilizes a full-reserve model instead of fractional-reserve to balance growth and stability. Rather than "printing money" and artificially suppressing interest rates, the protocol's reserve can generate exogenous yields to subsidize borrowing costs and stimulate growth—without the side effects of currency devaluation and unsustainable debt expansion.
As its name implies, dTRINITY consists of three key DeFi primitives. At the heart of the protocol is a native stablecoin that serves as the unified liquidity layer between its money markets and external liquidity pools. Tradable vaults for yield looping and liquidity provision strategies are also being developed to further simplify user experience and enable composability for advanced integrations with other DeFi protocols.
dTRINITY officially launched on the Fraxtal L2 network in December 2024. Follow-on expansions to Ethereum and other blockchains will commence in 2025. Within the same year, a utility token will be introduced to empower the community with governance rights over the protocol.
Key Components
Decentralized Stablecoin
dUSD StablecoindUSD is a decentralized ERC-20 stablecoin, fully backed by an on-chain reserve of USD stablecoins and yieldcoins. As dTRINITY's native stablecoin, dUSD unifies liquidity between dLEND and various integrated DEXs (e.g., Curve), streamlining trading, LP, lending, borrowing, and looping opportunities across the ecosystem.
dUSD's key differentiator lies in how its reserve earnings are externalized to users. Whereas most projects pay yields to the token holders/stakers, dUSD provides interest rebates to its borrowers on dLEND, lowering their effective interest expenses. This stimulates borrowing demand and utilization, driving yields and fee earnings higher for both lenders and LPs as well as the protocol.
Through subsidized loans, dUSD aims to become one of the top yielding stablecoins and cheapest sources of liquidity/leverage in DeFi, positioning dTRINITY as the premier platform for lenders, borrowers, loopers, and LPs.
Lending & Borrowing Protocol
dLEND Money MarketsdLEND is an Aave v3 fork that facilitates secured lending and borrowing activities for dUSD. In fact, dUSD is the only borrowable asset on dLEND and it cannot be borrowed against itself. Users must supply other assets as collateral in order to borrow dUSD. This design disables the rehypothecation of supplied collateral by default, preventing subsidy arbitrage while limiting risks to the protocol.
dUSD borrowing rates on dLEND are subsidized by interest rebates on an ongoing basis. As a result, dLEND is the only DeFi protocol with consistently lower Borrow APYs than Supply APYs for stablecoins—a completely opposite dynamic vs. other lending and borrowing marketplaces.
Decentralized Exchange
External Liquidity PoolsCurve is the primary DEX venue where liquidity pools for the dTRINITY ecosystem are deployed. These pools are vital in facilitating low-slippage swaps and efficient collateral liquidation between dUSD and other assets. dUSD LPs on Curve can also earn pool fees on top of protocol rewards and other incentives for supplying liquidity.
In addition to Curve, integrations with other major DEXs like Velodrome, Balancer, and Fraxswap will take place in the near future to further strengthen on-chain liquidity for dUSD and enable more LP opportunities.
Future Components
Utility Token
TRIN Token & dT PointsTRIN is the future utility and governance token of dTRINITY. Prior to the token generation event (TGE), dUSD lenders, liquidity providers, and community members are awarded dT Points by the protocol for their ecosystem contributions. During the TGE, all accrued points will be converted to TRIN, which will officially replace dT Points as protocol rewards.
Looping Vaults
dLOOP(s) are ERC-4626 vaults that offer automated and self-rebalanced looping strategies with tradable receipt tokens called "loopcoins" (e.g., 3X-leveraged sfrxUSD). These vaults are also powered by subsidized dUSD loans from dLEND, providing users with cost-efficient access to leverage.
Loopcoins are akin to leveraged exchange-traded funds (ETFs) in TradFi. They simplify the looping process through a one-click experience while providing vault depositors with fungibility and secondary market liquidity. Loopcoins could also be used as collateral or liquidity in other DeFi protocols—including DEXs, lending protocols, and interest rate marketplaces (e.g., Pendle)—enhancing their utility and composability across DeFi.
Liquidity Vaults
dPOOL(s) are ERC-4626 vaults that automatically provide one-sided liquidity for paired assets in external dUSD liquidity pools (e.g., supplying frxUSD to the frxUSD/dUSD Curve pool). These vaults generate earnings through trading fees and rewards from the integrated DEXs, dTRINITY, Fraxtal, and other third-party partners. dPOOL vault depositors also receive tradable receipt tokens called "poolcoins," which offer secondary market liquidity and composability benefits similar to loopcoins.