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 (Fed) central banking system, but in a decentralized and community-governed manner (i.e., DeFed). Unlike the Fed, however, dTRINITY operates under a full-reserve model, not fractional reserve, prioritizing stability and balancing protocol growth while guarding against 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 (dUSD) that serves as the unified liquidity layer between its money markets (dLEND) and external liquidity pools (e.g., Curve).
dTRINITY is scheduled to go live in Q4 2024 on the Fraxtal L2 networks. Follow-on expansions to Ethereum and other chains will commence in 2025. Tradable strategy vaults for looping (dLOOP) and liquidity provision (dPOOL) will also be released in 2025 to simplify the user experience and enable composability for advanced integrations with other DeFi protocols.
In the future, a utility token will be introduced to empower the dTRINITY community with governance rights and ecosystem benefits.
Key Components
Decentralized Stablecoin
dUSD StablecoindUSD is a decentralized ERC-20 stablecoin, backed 1:1 by an on-chain reserve of other USD-pegged stablecoins and yieldcoins. It is dTRINITY’s protocol-native stablecoin and unified liquidity layer. A majority of the dUSD reserve’s earnings will fund ongoing interest rebates for dUSD borrowers on dLEND, reducing their net interest expenses.
Through subsidized borrowing costs, dUSD aims to become the cheapest medium of leverage in DeFi, making dTRINITY the go-to platform for stablecoin lending/borrowing and looping.
Lending & Borrowing Protocol
dLEND Money MarketsdLEND is a Fraxtal-based fork of the Aave v3 protocol that facilitates secured lending/borrowing activities for dUSD and other digital assets. By default, dUSD is the only borrowable asset on dLEND. Plus, loans can only be taken out against other supplied assets, not dUSD. This design disables the rehypothecation of pledged collateral, limiting protocol risks while preventing subsidy arbitrage.
dUSD borrowing rates on dLEND are regularly subsidized via interest rebates to stimulate both demand and utilization, resulting in lower costs for borrowers and sustainable yields for lenders.
Decentralized Exchange
Curve Liquidity PoolsCurve is the primary DEX venue where liquidity pools of the dTRINITY ecosystem are deployed. These pools facilitate low-slippage swaps and efficient collateral liquidation between dUSD and other assets. dUSD liquidity providers (LPs) on Curve also earn pool fees on top of protocol rewards and other ecosystem incentives for supplying liquidity.
Other major DEXs like Velodrome and Uniswap
Additional Components
Utility Token
TRIN Token & PointsTRIN is the future utility and governance token of dTRINITY. Prior to the token generation event (TGE), a points program will be conducted to reward liquidity providers and community members for their contributions to the ecosystem. Upon the TGE, all accrued points will be converted to TRIN.
TRIN will be issued on Ethereum to enable native bridging with Fraxtal and other L2 networks, with the TGE planned for some time within 2025.
Looping Vaults
dLOOP vaults, built on the ERC-4626 standard, offer automated and self-rebalancing yieldcoin-looping strategies along with tokenized vault receipts, or “loopcoins,” similar to leveraged ETFs (e.g., 5X-sFRAX). They are also powered by Curve, dLEND, and dUSD, plus interest rebates.
Loopcoins simplify the looping process and unlock fungibility as well as secondary market liquidity for dLOOP depositors. Loopcoins can also be supplied as collateral or liquidity in other DeFi protocols like DEXs, lending protocols, and interest rate marketplaces (e.g., Pendle), further improving their utility and composability across the DeFi ecosystem.
Liquidity Vaults
dPOOL are ERC-4626 vaults that automatically supply dUSD liquidity pools on Curve (e.g., FRAX/dUSD) to earn trading fees plus rewards from dTRINITY, Curve, Fraxtal, and other third-party partners. Users will also be provided with “poolcoin” receipts in return, unlocking fungibility, composability, and secondary market liquidity for vault deposits.
After TRIN’s TGE, dPOOL vaults will serve as the primary “farm” for dUSD LPs to earn TRIN reward emissions from the protocol.