Proposal: Add Support for HUSD stablecoin

Hi All,

I notice that GUSD is applying for on boarding AAVE, so I am here to submit a proposal for adding support for stablecoin HUSD on AAVE. Since I am doing the same thing in DMM community.

Some info About HUSD:

Issuer: Stable Universal limited
Custodian: Paxos Trust
Backed by: U.S. Dollar, 1:1 ratio
Audit: Withum, monthly
Year of Issuance:July,2019

Twitter:https://twitter.com/Stablecoin_HUSD
Official Website:https://www.stcoins.com/
Attestation Reports: https://www.stcoins.com/attestation/index

Liquidity:
official website of HUSD: 1:1 exchange between USD and HUSD

1:1 exchange with PAX on Paxos and Huobi official website

CEXs: Huobi Global,FTX, Hotbit. HBTC, Hoo …
DEXs: Tokenlon, Kyber Network, Uniswap (in default list)

by the way, MakerDAO community has passed green light stage for adding HUSD as a new collectral, let’s see what will happen next.

Benefits for Aave:

Diversification of AAVE users: as the observation, most of the HUSD traders are large institutional traders, AAVE can provide competitive interest rate for them and attract more asset to locate on AAVE

More fiat on/off ramp choices: it seems that HUSD has advantages in Asia Pacific market, it will benifit users from those countries

Data of HUSD:
Stablecoin Ranking: #7
Circulating Marketcap: 132 million
Accumulated issuance: 2 billion
Trading Volume (24 hours): $ 20 million
Data Center:https://www.stcoins.com/data

Maybe someone will say " HUSD? I never heard of it." I believe, in crypto world, we should always be ready to meet new comers. Few weeks or months ago, we don’t have CRV, YFI, YFII, YAM or sushi. But now we all know them. Who knows what will happen next, right?

3 Likes

Thanks for submiting this proposal.

Just to update a news about HUSD, HUSD is now supported by NEXO.

Both CeFi and DeFi is important for stablecoins, so still hope AAVE community / team can add HUSD as an new asset on AAVE.

Thanks.

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HUSD is on Curve.fi now.

A good stablecoin choice for AAVE to support.

2 Likes

Dfi.money protocol(a.k.a YFII) has supported HUSD today.

Looks like HUSD goes well now.

I tend to support stablecoin solutions. In terms of borrowing needs, stablecoins usually have better application space and scenarios. But there are too many stablecoins on the market, why did AAVE choose HUSD? I cannot judge the liquidity risk

Overall, i think it is a good thing for AAVE to accept new assets. But I have a question,the current market value of HUSD is not high,so how to solve the demand problem? :star_struck:

Hi hhhhh,

As a trader I think this issue is relatively acceptable. Since the marketcap of HUSD is fast growing now.

source:https://coinmarketcap.com/currencies/husd/

Now the circulating supply of HUSD has reached $270M, that’s great.

And for AAVE system, to add a new asset with relatively low marketcap is not a bad thing in the risk control perspective.

Do you think so?

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Centralization is a problem, and even if it’s a centralized asset, will Huobi a good choice? Mmmm , I am not very sure about his.

I support HUSD to be added as a new asset. At least it has a compliant trustee, a trust company regulated by NYDFS.

Is compliance a test that DeFi will face in the future? I think so. Given that AAVE is also applying for a financial license and is also developing more compliance businesses, I think the subsequent asset selection also needs to be very cautious.

Because from a security perspective, trusts have a better debt isolation function. The so-called “bankruptcy isolation” means that when the trustor or the trustee goes bankrupt, the beneficiary can still maintain the benefit of the trust property and can oppose the ordinary creditors of the trustee and the trustee. In traditional credit financing with a bank as an intermediary, investors are merely creditors of the bank. When the bank goes bankrupt, they face a huge risk that their claims cannot be repaid. However, in trust investment, the investor no longer exists as a creditor of the bank, but as the owner of the trust property income, which helps reduce risks.

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As of now, HUSD has become the fifth stable coin in the world. It’s market cap is larger than TUSD and PAX. As AAVE has supported TUSD, sUSD, I don’t see a reason for missing HUSD.

In the perspective of AAVE, it’s better to support as more assets as possible, if the asset is safe enough. Because different assets will attract different users, to increase the diversify of the whole ecosystem, it’s a way to decrease the sysmetic risk.

And as for the liquidity, I don’t see it’s a problem.

As far as I know the liquidity of HUSD onchain and in centralized exchange is not bad:

Mooniswap

Uniswap

Curve

For centralized part it’s an advantage for stablecoins like USDC, PAX and HUSD.

The bank fiat on/off ramp is always available for these stablecoins who follow regulation and compliance.

Platforms like FTX, Huobi , HBTC and Paxos has supported the trading of HUSD and USDT or other cryptocurrencies. As a trader, I don’t see HUSD has a liquidity problem.

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Sure, agree with u. :sunglasses:

Thanks for asking for this.As a team memver of HUSD, let me give a brief introduction, hope you can make it more clear about HUSD.

The HUSD token is issued by Stable Universal Limited (a BVI company), an independently-run affiliate of Huobi Group.

The assets backing the HUSD are custodied by Paxos Trust Company (a NY-registered trust company) and attested by a US audit firm, neither of which are Huobi subsidiaries or affiliates.

Although not a direct Huobi-issued product, HUSD was first listed on Huobi Group’s global exchange, Huobi Global, on July 20th, 2019.

And I don’t think Centralization for stablecoin is a bad thing, since it’s related to fiat, so we must follow the regulation and must have KYC/AML procedures. So that we can provide a secure and safe service for clients and users.

Feel free to share more.

Neither critique nor support, but it would be wise to lend your thoughts to the idea of new listings having consequential impacts on the aave governance, as well as the ecosystem. One improper listing - one mistake, and tens of millions of over leveraged trading sticks will trigger a deficit.

I too am eager to expand our horizons, but only if we do so when considering both sides of the token. Literally.

Sure, that’s a good suggestion.

I think for the risk or impact, it should be considered in different aspects.

1.technical side :any smart contract bug / code defects
2.compliance: will the token to be regarded as security/ any regulation, compliance problem
3.liquidity side: is it easy to liquidate the token

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I think for the risk or impact, it should be considered in different aspects.

@DeFiNavy 4. is it worth to sum another asset ? why HUSD instead of another ?

One improper listing - one mistake, and tens of millions of over leveraged trading sticks will trigger a deficit.

@Chevis I’m thinking the same way

I saw the decentralized exchange liquidity of HUSD is increasing. That’s an interesting thing. I will definitely vote for this.

And I have know some institutional players who want to participate in HUSD borrowing and lending. No joking.

I noticed that the forum has updated new categories, but I can’t change the tag from governance to Asset Risk, as I can’t edit this post.

Maybe I need the help from administrator. Thank you.