Issue Statement

The USDD team would like to integrate USDD as a new Independent Base Asset into the Stargate protocol, facilitating cross-chain transfers over Stargate. The USDD team has followed the template published in commonwealth for completing this proposal.

Solution

• The Stargate team will build the smart contracts to support USDD transfers on Stargate initially over Ethereum and BNB. Ethereum-USDD will allocate 100% of its liquidity to BNB-USDD, and BNB-USDD will allocate 100% of its liquidity to Ethereum-USDD:

• Only these liquidity pools will be connected to each other. Stargate will not support cross-token transfers with USDD (i.e. USDD <> USDC, USDT, BUSD will not be supported).
• Stargate will not initially provide liquidity incentives for these pools. The USDD team will provide the initial liquidity.
• The Stargate team should have discretion in building new transfer functionality to & from additional blockchains for this asset as demand grows.
• The USDD team will provide a minimum of $1M in USDD for each pool (Ethereum-USDD & BNB-USDD).

Success

• Stargate protocol can support significant transaction volume through USDD, generating fees for the protocol.
• Stargate receives integration adoption for applications looking to transfer USDD cross-chain.

Execution

• Once the smart contracts are completed and deployed, this will need to be implemented in the back end and into the front end. Lists will need to be updated on respective networks to reflect the changes.
• When other networks require the transfer functionality, the Stargate Team will facilitate this functionality.

Timeline

• Initial Smart contract development: 3 days
• Front end development: 1-3 days
• Once the initial set up is in place by the team, it will be much easier and quicker to deploy new base assets.

Summary

• The USDD team is proposing that Stargate support USDD transfers over Ethereum & BNB.
• The Stargate protocol will not incentivize liquidity for USDD pools. The liquidity will come directly from the USDD team.
• USDD cannot be transferred for other tokens within the Stargate protocol. Stargate will only support USDD<> USDD transfers.
• The USDD team will provide $1M in USDD liquidity on each pool (Ethereum-USDD and BNB-USDD)
• The Stargate team has discretion to build out more functionality that supports USDD transfers on other chains.