[ARFC] Onboard fdUSD to Aave v3 on BSC

Gauntlet Analysis


Gauntlet recommends onboarding fdUSD to Aave V3 BNB. We give further color below.


Market Cap

First digital usd (FDUSD) is the fourth-largest stablecoin in terms of market capitalization, currently valued at ~$2.6 billion. Its 2.2% supply (~$49M) is on BSC.

Screenshot 2024-01-23 at 3.44.44 PM


  • Mostly traded fdUSD pair is FDUSD/USDT with 24hr trading volume being ~2M on Pancakeswap V3 (BSC). See here.
  • FDUSD/USDC trading pair has 24hr trading volume of ~18K on Pancakeswap V3 (BSC). See here.


First Digital Labs publishes a monthly reserve report outlining the composition of reserves including U.S. treasury bills maturing in less than three months, cash deposits in U.S. dollars, one-month U.S. dollar fixed deposits, and overnight reverse repos collateralized by U.S. treasury bills.

S&P Global assesses the ability of fdUSD to maintain its peg to the U.S. dollar as constrained.


Given the on-chain liquidity and market cap profile analyzed above, Gauntlet recommends parameters as below.

Parameter Recommendation
Isolation Mode NO
Borrowable YES
Borrowable in Isolation YES
Emode Category NO
Collateral Enabled YES
Stable Borrowing NO
Supply Cap 4M
Borrow Cap 3.6M
Debt Ceiling N/A
LTV 70%
LT 75%
Liquidation Bonus 5%
Reserve Factor 20%
Base 0%
Variable Slope 1 6%
Variable Slope 2 75%
Uoptimal 90%
1 Like