Exploring the Yield Dollar

A view into the possibilities for cross-chain DeFi on CKB

Sparkling

This week we saw an interesting thread posted to Nervos Talk by Sarah, describing a “Yield Dollar” or cUSD, an idea of cross-chain asset bonds, inspired by Dan Robinson and Allan Niemerg's paper "The Yield Protocol: On-chain Lending With Interest Rate Discovery".

cUSD can be generated by CKB or any asset that is transferred through the Force Bridge to CKB, such as cETH collateral. cUSD can be thought of as a bond with a fixed maturity and interest rate. Before the expiration of cUSD, cUSD can be traded for a stablecoin such as USDC at a certain discount (dictated by supply and demand) on a DEX.

To learn more about the mechanism, click here to view the Nervos Talk post. 

cUSD could also have many use cases beyond leveraged trading, such as providing liquidity for mining operations, etc., and can further improve the rate of return by combining the probability of income aggregation and cross-chain two-way income.

Features of cUSD on CKB include:

  1. Can be sent and received by users of different chains, such as Ethereum or TRON, using existing addresses, with no need to generate new CKB addresses

  2. Leveraged cross-chain assets and increased return potential, all in one wallet

  3. Higher potential returns raise interest for more assets on CKB

  4. The exchange rate of cUSD and stablecoins can become an anchor for lending rates on CKB

  5. More experiments can be based on cUSD, such as interest rate swaps.

RFC

Nervos applies the RFC (Request for Comments) process for implementing every building block of the protocol. There were 27 Previous RFCs, which can be found here.

If you are curious about why a design in CKB is what it is now, please post your questions in this repository.

Dev Updates

Core

  • CKB

    • (#2475) fix doc about epoch in type ChainInfo

    • (#2474) add an argument in command line to control integration report

    • (#2365) tx pool callback

    • (#2459) bump quote from 1.0.7 to 1.0.8

    • (#2460) bump lru from 0.6.2 to 0.6.3

    • (#2461) bump toml from 0.5.7 to 0.5.8

    • (#2462) bump chrono from 0.4.11 to 0.4.19

    • (#2463) bump anyhow from 1.0.35 to 1.0.36

    • (#2464) bump syn from 1.0.54 to 1.0.55

    • (#2465) bump faketime from 0.2.0 to 0.2.1

  • Dev Tools

    • Lumos [JavaScript/TypeScript based dapp framework]

      • (#136) fix: Use bigint for cell OutPoint’s index

      • (#135) Use js-xxhash so base packages works in browser environment

    • Capsule [development framework for creating smart contract scripts in Rust for CKB]

  • Neuron

    • (#1970) Allow searching txs with counterparty address

  • CKB Explorer

    • (#772) Fix security alert

    • (#764) refactor: address transactions cache

    • (#760) merge master to develop

Layer 2

  • Muta [layer2 framework on CKB]

  • SECBIT Labs [Zero knowledge proof toolkit for CKB]

    • (#50) fix bulletproofs test

    • (#49) add examples for libra&hyrax

    • (#11) remove redundant constraints for range proofs

    • (#51) use curve::vartime_multiscalar_mul replace msm

  • Godwoken [A framework to build rollup solutions upon Nervos CKB]

    • (#51) Cancel issuing block in case of submission errors

    • (#38) Refactor code for rare case syncing inconsistencies

    • (#50) Upgrade poa module with logger included

    • (#49) Better error handling

    • (#46) Add util for syncing db

    • (#45) Upgrade clerkb version

    • (#41) PoA integration

    • (#42) Re-verify txs after tip block updated

    • (#12) Add validator_utils.h

    • (#30) Add ethereum signing module

    • (#32) Readonly mode

    • (#28) Add stake-lock contract

    • (#27) JSONRPC Server implementation

    • (#25) Extract common interface for handling state lock generator

    • (#18) Add always success account lock

Cross-chain

  • force-bridge-btc [maps BTC on Bitcoin to cBTC on CKB in a trustless way]

  • force-bridge-eth [maps ETH on Ethereum to cETH on CKB in a trustless way]

    • (#133) relay tiny headers

    • (#92) add bridge tests

    • (#131) fix(eth-contracts): ci error

Ecosystem

  • Hxro [Gamified Crypto Trading Platform]

  • Tocial [cosplayers’ photo sharing app]

  • Lay2 [pw-sdk, build dApp on CKB and run them everywhere]

  • Obsidian Labs [developer IDE]

  • Synapse [browser wallet and keyper agency]

    • able to fill typeHash to manage udt form

    • remove unnecessary code

    • add message manager

    • update locks info

The Nervos Foundation currently runs a grants program for builders, check out the scope and how to apply.

CKB Weekly is curated by a group of people who witnessed Lina’s birth and started this to record her growth. Any views expressed are personal and do not represent an official position of the Nervos project.

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Meanwhile, there are links below if you want to learn more about the project and community.