Zunami DAO Vote Id: 12 - Add eUSD/FRAXBP Strategy to the USD Omni pool

The Zunami Team is excited to announce that the vote is now open to add Convex - eUSD/FRAXBP as a new USD Omnipool strategy. A proposal has been submitted to the DAO for review and approval, along with the transfer of funds.

Protocol Description: The Reserve Protocol is a decentralized stablecoin platform that allows anyone to create a stable and decentralized cryptocurrency (“RToken”). It achieves this objective through a combination of 1:1 asset-backing, autonomous stabilization/safety mechanisms, and decentralized governance system. RTokens can be backed by baskets of ERC20 tokens on the Ethereum blockchain.

Stablecoin Description: Electronic Dollar (eUSD) is a dollar-pegged stablecoin built to endure black swan events thanks to a novel overcollateralization design, recently proving itself during the run on Silicon Valley Bank. eUSD was deployed by MobileCoin and has been adopted by the MOBY app and the RPay app in Latin America, which was recently celebrated in a 2023 IMF Working Paper for helping users preserve savings and protect livelihoods from volatility due to hyperinflation.

Custody and Collateral Risk: Asset-backing for RTokens are held in smart contracts. eUSD is fully collateralized by USDT and USDC held in lending protocols on Aave and Compound. Anyone can deposit the required collateral baskets to mint RTokens. Anyone can deposit the required RTokens to redeem their collateral.

Smart Contract Risk: The Reserve Protocol has undergone a rigorous combination of comprehensive system testing, independently-conducted audits, Code4rena, Trails of Bits, Solidified, Ackee, and others. . https://reserve.org/protocol/security/?search=audita#s-result Additionally, they have initiated a bug bounty program offering a reward of $5,000,000 for identifying vulnerabilities. https://immunefi.com/bounty/reserve/

Depeg Risk: To mitigate the risk of depegging, the Reserve Protocol has on-chain proof of reserves that allows anyone to audit and verify asset-backing, anytime. The protocol uses a novel overcollateralization mechanism, where RSR stakers are the first loss capital in the case of failing collateral. The mechanism was battle tested during the run on Silicon Valley Bank on March 9th: https://medium.com/reserve-currency/eusd-emerges-strong-the-resilience-of-reserve-protocol-during-usdc-depegging-e5a698a990c9

Risk of Stop Incentivization: The Reserve Protocol holds 973,000 CVX tokens, which are used for voting purposes.

Actions: Add «Convex - eUSD/FRAXBP Pool strategy as a new USD Omnipool strategy.