Hey Empty Set Community, it’s been a while since we’ve done regular newsletters and now we are back with bi-weekly newsletters. If you have no idea what ESS is please refer to a previous newsletter, and this video explainer which explains what V2 (even though it says V1.5). You can (should) also read the Medium article written by the ESS, and the article from Lewis Freiberg introducing the two new tokens. Todays update will include status of the peg, migration reminder, and integrations/partnerships/new chains ESS | DSU will launch on.
Status of the Peg Since Launch
While it seems obvious that DSU has maintained peg since it is fully collateralized by USDC, its important to not gloss over the smooth launch of V2. It is incredibly important that DSU has been able to maintain peg without issue. The ability to maintain peg for as long as we have gives the project leverage to convince protocols looking to integrate a new stable coin asset to use DSU and more importantly, it shows new protocols that are launching that we are a great trust minimized alternative.
Additionally, we have been able to adjust the protocol as well. This shows that the DAO is nimble. Should anything happen with USDC, the DAO would be able to adjust to a different asset, and continue to maintain peg. As censorship and regulation concerns increase, DSU is well positioned to continue to be a massive value add to the DeFi space.
Migration
If you still have ESD and you have not migrated to ESS, don’t stress, the contract will remain open forever. The rate of exchange is fixed at 1ESD=3.2ESS. The ratio of hte protocol will remain the same. There might still be an arbitrage opportunity by going here, where you can make more ESS by trading your ESD for ESS. (Use Matcha at your own risk.) Just a heads up - we are currently setting up a proposal to do this with treasury funds, so you may want to act quickly.
Community Call
We held a community call on August 16th. We covered migration, the DeFi Pulse Partnership, Equilibria Partnership, SN2 Team and what we can expect in the future. We’ve already begun delivering on some of the things described in the community call. If you haven’t watched it, take some time to catch up on the roadmap that you can expect to see executed and learn about the team that is undertaking its execution.
Integrations/New Chain Launch
Sablier
You can now get paid by your employer in DSU! Their interface allows you to set up a streaming payment contract for employers and employees. This means that if you and your employer would like to negotiate pay in crypto currency, you can! As an employee you don’t have to spend time and fees transferring fiat into crypto. As en employer you have a much better, safer, smoother, and cheaper way of doing pay roll.
As the crypto world becomes more and more integrated with the real world, there will be increased demand for payroll systems that allow for employers to pay their employees in the crypto of their choice. One of those currencies is now DSU. For more information on Sablier, click here.
DSU Launched on xDAI
xDAI now has two DSU pools: xDAI/DSU and USDC/DSU. This chain has incredibly low fees and exposure to an emerging ecosystem through the use of HoneySwap, Swapr, and Agave. (HoneySwap is a network of decentralized exchanges. Swapr is a governance-enabled automated market maker with adjustable fees.. Agave is a DeFi lending protocol.) Many users have been asking for ways to circumvent/mitigate high gas fees, it was only a natural decision to integrate with these L2 & Sidechains to offer DSU | ESS holders optionality on which preferred chain they'd like to utilize.
Polygon Coming Soon
While the ETH network continues to reign supreme for DeFi, it is almost impossible for any sub 5 figure transaction to make sense financially. This means the promise of DeFi is only for the wealthy, and that is antithetical to the central premise of the DeFi space. The Empty Set community has asked for alternative options and we are actively pursuing them. The DeFi Pulse Team in conjunction with the SN2 Team is currently working on getting DSU and ESS on Polygon. As we continue to work on this launch, we will update the community.
This move will allow for our community to use ESS, and DSU on the Polygon network. Polygon has faster transaction speeds that are also at a lower cost than on Ethereum, making it an attractive chain to use for decentralized finance applications. A trust-minimized stable coin like DSU and its seignorage coin ESS are a perfect fit for the Polygon Network.
The biggest advantage of Polygon is that has a lot of potential and actual use-cases, and it is built to scale as user volume increases, which means that in theory it can be used for mass adoption. Currently Polygon hosts an incredible network of DeFi Apps including Aave and Sushi, just to name a few.
Rabbit Hole
ESD SN2 Youtube Channel - Community Calls