List ESD as Collateral Asset

Summary

Empty Set Dollar (ESD) has been one of the fastest growing algorithmic stablecoins launched to date. Its market capitalization has grown to nearly $200 million in the 3.5 months since its inception. As the market capitalization has increased, so too has the number of unique addresses holding ESD, the liquidity of the asset, and the avg. daily trading volume.

The unique mechanism design of the Empty Set Dollar protocol makes it a strong candidate to become one of the largest stable collateral assets in the decentralized finance ecosystem.

In spite of its large & growing community and adoption, unlike other stable assets like USDC, USDT, and DAI, ESD is not yet listed as collateral on any decentralized money market protocols. In order to grow their TVL and generate more usage + to improve the overall effectiveness of the DeFi ecosystem, C.R.E.A.M. should add supply and borrow for ESD.

For: List ESD as collateral asset Against: Do nothing

Abstract

Empty Set Dollar (ESD) is an algorithmic, seigniorage-based stablecoin that utilizes fixed protocol rules on supply expansion as well as a unique coupon creation + redemption model to incentivize trustless coordination between selfish participants that maintain ESD’s synthetic peg 1:1 with the US dollar all on-chain. Unlike other algorithmic stable coins like AMPL, ESD does not rebase all balances using non-standard functions, but instead adjusts supply through other mechanisms, allowing ESD to have the same composability as other standard ERC20 tokens.

Currently, crypto lacks a truly decentralized and censorship-resistant stablecoin. While DAI and sUSD come close, they currently have vulnerabilities in their architecture. The goal of ESD is to create a truly permissionless, scaleable, stable store of value, that can be used as superfluid collateral in DeFi.

Liquidity

Total Uniswap Liquidity as of 12/14/2020: $76.3 million

24 Hour Trading volume: $13.9 million

Token Holder Distribution

As of 12/14/2020 there are currently over 446 unique addresses holding ESD; however, this does not calculate the large # of addresses currently staked in the DAO / LP

Check out: www.esd.tools for more network statistics

Motivation

ESD has one of the most active and rapidly growing communities of any stablecoin in the market, yet is underrepresented relative to it's market capitalization on existing DeFi protocols like CREAM. Adding ESD to CREAM will likely expand the platform TVL.

It would also benefit the ESD community by increasing offering the ability for speculators to take a short position in the asset, thus creating a new mechanism to stabilize the price of the ESD token when its TWAP sits above the $1 target. Finally, accelerating the growth of ESD would enhance the antifragility of the entire DeFi ecosystem due to ESD’s unique characteristics relative to other stable assets.

Primary Resources on ESD

• Whitepaper: https://github.com/emptysetsquad/dollar/blob/master/døllar.pdf

• Website: https://emptyset.finance/#/
• Twitter: https://twitter.com/emptysetsquad
• Source Code: https://github.com/emptysetsquad/dollar
• ESD token contract: https://etherscan.io/token/0x36f3fd68e7325a35eb768f1aedaae9ea0689d723
• EIPs: https://www.emptyset.xyz/t/eip-1-improvements-to-esd-coupon-redemption/32
• Medium: https://medium.com/@emptysetsquad
• Discord: https://discord.com/invite/vPws9Vp

Additional Resources

• https://medium.com/@lewisfreiberg/empty-set-dollar-esd-a0abbfc5ecdb
• O’ligopoly Productions Writeup
• Defi Weekly Writeup by Kerman Kohli
• esd.tools (dashboard for tracking the state of the network)
• https://explore.duneanalytics.com/dashboard/empty-set-dollar
• https://medium.com/@scott_lew_is/a-vision-for-empty-set-dollar-ce29b7e0e297

=====contents above are drafted by AlienWatts===== Discussion Link: https://forum.cream.finance/t/proposal-list-empty-set-dollar-esd-as-a-collateral-asset/297