D3M - Direct Deposit Module

What is D3M?

D3M, or the Direct Deposit Module, is a mechanism that enables the direct minting of stablecoins — in this case, lisUSD — and deposits them into DeFi platforms to bolster liquidity and optimize market rates. Unlike traditional minting tied to collateralized assets, D3M leverages credit-based minting, allowing more flexible supply management and creating new opportunities for ecosystem growth.

Lista DAO’s D3M will inject lisUSD directly into DeFi lending platforms, creating new use cases for lisUSD while providing a stable borrowing environment for users.

Restricted Use of Minted lisUSD

To ensure the integrity of the system, all lisUSD minted via D3M will be exclusively allocated to liquidity pools on selected platforms like Aave and Venus. This guarantees that the funds directly contribute to lisUSD’s DeFi applications without risk of misuse.

By enhancing liquidity on these platforms, lisUSD gains more utility, fostering greater adoption and demand among users.

Market Rate Optimization

D3M introduces an advanced mechanism for controlling market rates by dynamically adjusting lisUSD supply on lending platforms. Active Market Operations (AMO) on Aave and Venus allow for more granular rate control compared to direct adjustments on the Lista DAO platform.

• Competitive Borrowing Rates: The aim is to keep borrowing rates for lisUSD on Aave/Venus lower than those on the Lista DAO platform, making it an attractive choice for short-term borrowers.

• Platform-Specific Strategies:

• Aave/Venus: Ideal for short-term borrowing with higher capital efficiency and dynamic rates.

• Lista DAO Platform: Best for long-term borrowing, offering stable rates determined through community governance.

Revenue and Ecosystem Growth

The returns generated from lisUSD deposits on Aave and Venus, including interest and token rewards, will be funneled back into Lista DAO’s treasury. These funds will support ecosystem growth, fund proposals, and strengthen community rewards.

Phase 1 Implementation Details:

• Initial Minting Cap: 2.5 million lisUSD

• Supported Platforms: Venus and similar DeFi protocols

• Mint lisUSD for deposit into Venus Core Pool

• Support for deposits and withdrawals of principal and interest

• Ability to burn minted lisUSD when necessary

• Profit and reward retrieval mechanisms to ensure the DAO benefits directly from lending platform activities.