H1-2023 Overview Report

Project Overview

Threshold USD is a decentralized stablecoin project, derived from a Liquity protocol. It offers participants the ability to mint thUSD, a USD soft-pegged decentralized stablecoin, guaranteed by either ETH or tBTC, maintaining a collateral ratio of no less than 110%.

The methodology applied by the protocol is known as Protocol Controlled Value (PCV) to fuel the stability pool, wherein the PCV possesses liquidity and routes capital straight to the stability pool, thus forming a self-replenishing feedback cycle. While Liquity Protocol relies on the LQTY token to promote the expansion of the stability reserve, thUSD adopts an alternative strategy, leveraging the PCV with the bootstrap loan to fuel the stability pool, thus bypassing the necessity for the LQTY token entirely.

This paves the way for a more sustainable model where revenues can be channeled to PCV, facilitating lasting growth and equilibrium. Bonuses are dispensed to reserves on disparate platforms to stimulate users to incur debt and deposit into Curve, fostering increased liquidity and resilience.

Development Overview

An overview of the project development process, the team involved in the development, and the technologies used.

Review of ThresholdUSD project development - H1.2023:

Front-end

Support of multiple wallets and networks

• Application UI has gained support for multiple wallets, initially: Taho, Coinbase wallet, Metamask, and Walletconnect. This was succeeded with the Web3-onboard implementation. The provider is being batched up, using the scripts already developed priorly that batches read calls to smart contracts to improve efficiency. It uses the Multicall smart contract for batched calls, which reduces the number of separate Ethereum JSON-RPC calls to the blockchain.
• The application has gained support for multiple networks, currently being Goerli, Sepolia and Mainnet (If available - not the case right now). Sepolia contracts has been deployed and pushed in this PR.
• Major improvements in store starting calls in React package, and in the calls of the functions of the BlockPolledLiquityStore class itself
• Deployment scripts modified to comport new params being passed to BAMM contract, based on PR #75

PR: https://github.com/Threshold-USD/dev/pull/83

Closes issue #66 Closes issue #84 Closes issue #85

Only owner requirement to setPrice function in pricefeedtestnet

• Adapted the front-end for the ERC20 interaction with the vaults.
• Implemented a constant for the ERC20 typo, to facilitate the ticker change posteriorly.
• Implemented functions for getting the balance and getting the allowance qty of the ERC20 in the libs.
• Set the front-end to a test-only version state to avoid not-deployed contract interaction in mainnet.

Commit: https://github.com/Threshold-USD/dev/pull/36