Could Centrifuge be a safety net for stables

I have been thinking about this for a while and was curious if the team has considered using their drop and tin tokens as a hedge against stablecoin risks by allowing for investment and redemption in any stable dollar-pegged coin. In my view, this would be something that would certainly make larger institutions, which are scared of another ust, more comfortable diving into defi. Obviously, if assets default this could cause drop to go down but that would be the same as assets defaulting when invested with usd, so that part should be familiar to the larger institutions.

When I invest my dai into the pool I receive drop. If the issuer immediately redeems this for usd and invests in an asset uncorrelated to dai, as pool are already, and dai depegs, then as an investor I am in the clear since I no longer hold DAI, I hold Drop. In this case, I would rather redeem drop for usdc or another stable thus hedging my chances against devalued stablecoins. (this assumes liquidity always remains zero and there is no stable cash drag)

If the team were to consider including more stablecoin options for investment the same could be done for those as well, thus making APY not on stablecoin but rather my drop and with the offramp of any stable of my choosing. Just my silly thoughts, I think a conversation around this strategy would also speak volumes to dao treasuries.

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Hi @Lumination

interesting idea indeed. There was a similar thought concerning stable coins by @Sherman who proposed to swap CFG-tokens in the treasury. The link to the post can be found below if you want to give it a read:

The possibility to see more stable coins in pools is not out of the roam of possibility. There is an ongoing proposal to open channels between Statemint (USDT), Moonbeam (USDC) and Acala (aUSD) and Centrifuge:


I agree this is an interesting idea. I think it makes total sense and could bring more liquidity and safety around stables.

I think one of the problems is the amount of dev time it might take to make this possible, currently dev time is allocated on Centchain, Pools, and connectors.