Introduction of arUSD

In an era where DeFi is rapidly evolving, the concept of saving has transcended traditional bank accounts. Enter arUSD, an innovative autocompounding token designed to revolutionise how DAOs and individual users manage and grow their savings. Much like a high-yield savings account, arUSD offers users the opportunity to earn interest on their holdings. However, it goes a step further by automatically reinvesting earnings to maximise returns.

arUSD is the tokenized version of rUSD EtherFi Stability Pool vaults from Convex Finance. Why eETH? We believe EtherFi’s eETH is the most liquid and reliable LRT! Why Convex vaults? Boosted yield! Since Convex it’s a big veFXN holder, it provides the highest yield on f(x)’s Stability Pools.

What Can You Do with arUSD?

Simple Savings

You can simply hold arUSD in your wallet and treat it like a savings account, enjoying the benefits of automatic compounding interest.

Advanced DeFi Strategies

For more savvy DeFi users, arUSD offers a range of advanced options:

Yield Splitting:

arUSD is ideal for use with Yield platform ie Pendle/Spectra, where it can be split into Principal Tokens (PT) and Yield Tokens (YT).

PT holders earn fixed yields to maturity plus LP incentives, while YT holders can earn all the yields along with restaking points.

Collateral on Lending Protocols:

arUSD is an ideal collateral for lending protocols.

As it already earns leveraged points, users can loop borrow against other stablecoins, leveraging up to earn more yields and points without liquidation risks under most circumstances.

Layer 2 Utility:

On Layer 2s, users can earn restaking yields and leveraged points with low transaction costs.

What is the risk?

As part of f(x)’s risk management mechanisms, liquidations may occur when rUSD goes into stability mode, redeeming rUSD in the stability pool for weETH at the prevailing liquidation price. The liquidated weETH is held in the vault, and converted back to rUSD only when the value of weETH in the vault is 100% of the redeemed rUSD.

However, it goes a step further by automatically reinvesting earnings to maximise returns and by letting holders accrue up to 6x ether.fi and 2x Eigenlayer points.

Below is the Summary of arUSD: