USDaf Multi-chain Expansion

Ideas (Step 1)
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I’m curious about USDaf’s potential for multi-chain expansion. Could you theoretically fork USDaf’s Liquity v2 contracts to chains like Base, Hyperliquid, or Aster, using native collaterals (e.g., cbBTC on Base or USDF on Aster) while enabling interoperability with USDaf on Ethereum mainnet? For example, could cross-chain bridges or messaging protocols like LayerZero enable liquidity flows, allowing side-chain USDaf to support mainnet’s ecosystem? Lets talk about it!

3 Likes
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This is a bit unrelated but adds to the idea of multichain expansion -

Personally, I don’t see Solana as the most optimal chain from a security perspective (and I’m not always convinced by how the Solana team handles things). That said, the UX and community are undeniably strong, and Solana has carved out a solid spot in the market. It’s often labeled as a “casino chain,” but we’re starting to see ETH devs move over to Solana to build DeFi.

One thing I’ve noticed: as far as I know, there’s currently no truly decentralized stablecoin protocol on Solana. While I consider myself more of an ETH maxi, I don’t think we should dismiss chains like Solana. It has real attention, mindshare, and a strong community.

:backhand_index_pointing_right: My proposal: maybe in the future we could look into expanding USDaf into the Solana ecosystem.

This definitely doesn’t need to be a short-term priority – first we should focus on growing strong on Ethereum. But I do believe that a multichain expansion to Solana down the line could bring real value and TVL growth.

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After listening to the teams thoughts on this last AMA, I’m thinking the following would (possibly?) be feasible:

USDaf-Base Fork: USDaf, Asymmetry Finance’s Liquity v2 fork on Ethereum mainnet, supports borrowing against BTC wrappers (wBTC, tBTC) and yield-bearing stablecoins (sUSDS, sfrxUSD, scrvUSD, ysyBOLD) with user-set fixed rates. Its infrastructure—trove-based CDPs, stability pools, redemptions, and liquidations—relies on Ethereum’s security and integrations like Yearn for yields. Mainnet’s high gas costs and redemption issues (e.g., oracle delays) limit scalability. ASF’s existing Base deployment enables a native fork, leveraging Base’s low fees, EVM compatibility, and DeFi ecosystem (Aerodrome, Yearn, Euler V2) to replicate USDaf’s mechanics with local collaterals, bypassing mainnet minting restrictions.

Solution: Deploy USDaf-Base as a Liquity v2 fork with independent troves, pools, and redemptions. Use ASF’s Base token for governance and bridge fees to mainnet via a cross-chain messaging protocol. Mirror Liquity’s BOLD Base deployment (bridged supply, Aerodrome incentives) to bootstrap liquidity.

Infrastructure Replication:

  • Minting/Burning: Local troves mint USDaf-Base against Base-native collaterals. Burning repays debt.

  • Redemptions: USDaf-Base redeemed for collateral (split across pools), with low fees ensuring peg stability.

  • Yield Generation:

    • Stability Pools: Per-collateral pools; depositors earn interest (in USDaf) + liquidation gains.

    • sUSDaf-Base: Yearn ERC-4626 vault auto-allocates USDaf across pools for yields.

    • Liquidity: Aerodrome USDaf-Base/USDC pools (ASF emissions); integrate with Euler V2/Pendle/Yearn.

  • Collaterals: cbBTC, tBTC (BTC variants); sUSDS, USDC (possibly generate yield on base through Morpho?), USDY (yield-bearing stables). Propose Yearn partnership to deploy ysyBOLD, expanding Liquity’s ecosystem.

  • Pools: Replicate mainnet’s Curve, Yearn, Pendle, Euler, Uniswap via Aerodrome (USDaf-Base/USDC), Yearn (sUSDaf-Base), Euler V2 (lending), Pendle (yield trading).

Implementation:

  • Testnet: Deploy contracts, test minting/redemptions.

  • Mainnet: Launch with collaterals; seed Aerodrome pools with ASF treasury.

  • Governance: ASF Base token for L2 votes; mainnet Snapshot for coordination.

  • Mitigations: Low fees, deep pools for redemptions; multi-oracle for yield assets.