coreUSD: Locking CORE LST to Generate Stability

Proposal to Introduce CoreUSD in the CORE Ecosystem

CoreUSD is a stablecoin within the CORE ecosystem to enhance liquidity and utility.

Collateralization with CoreETH:

  • CoreETH, locked within the CORE-LAYER protocol, acts as primary collateral for CoreUSD, ensuring stability and value preservation.

Core LST ETH Staking Node:

  • Functionality: Users can lock ETH into a staking node (Core LST ETH) to validate transactions and earn rewards.

CoreUSD Minting:

  • Mechanism: CoreUSD can be minted by locking Core LST ETH as collateral, offering users a stable store of value. Alternatively coreUSD can be redeemed for core ETH LST at a 1:1 at anytime.
  • As more CoreUSD is minted, more Core LST ETH is locked, further enhancing the staking node strength.

Benefits:

  • Native APY: Core LST ETH and CoreUSD generate native APY, fostering growth and liquidity.
  • Enhanced Liquidity: CoreUSD provides liquidity, while Core LST ETH generates yield, creating synergy.
  • Value Creation: Introduction of CoreUSD adds value and utility to the CORE ecosystem.

Potential Expansions:

  • Locked CoreUSD: Introduce locked CoreUSD to increase voting power or yield within the ecosystem.
  • Further Integration: Explore additional features like governance integration or cross-chain compatibility.

References:

this idea is taken from prisma finance: