DIP 004 – Proposal to Implement DF Burn within USDx protocol

• USDx protocol currently requires 0.1% fee in DF to be paid in order to disaggregate USDx into its underlying constituent stablecoins. The accumulated fee is 37,678 DF as of 30 October, 2020. • Propose to burn the accumulated fees collected in the contract address; and to • Implement an upgrade to USDx protocol to allow automatic burn of future disaggregation fees. • This proposal is one small step toward implementing DF value capture mechanism across dForce protocol matrix.

Background • USDx is a synthetic stablecoin backed by a basket of regulated fiat stablecoins, with constituents and weighting adjustable through on-chain governance. 1 USDx = 80% USDC + 10% PAX + 10% TUSD. Anyone can use the protocol to mint or disaggregate USDx at any time. • 0.1% of the USDx amount denominated in DF will be consumed to facilitate the disaggregation of USDx into its constituent stablecoins, which is currently held through this contract: 0xD5478011CCB79189a240a96EC913a8021b54cE6d. • As of 30 October, 2020, there is 37,678 DF sitting in this contract.

Proposal • We propose to burn the accumulated fees collected in DF from USDx disaggregation permanently. • We also propose to implement an upgrade to USDx protocol, which allows automatic burn of future disaggregation fees.