[Discussion] Add FIDD as a Peg Stability Reserve Asset

Proposals
1

Summary:

Add the stablecoin FIDD as a Peg Stability Reserve asset. Create accompanying FIDD / crvUSD gauge

Abstract

Currently, there are 4x Peg Stability Reserve assets: USDC, USDT, PYUSD, and FRXUSD. This post seeks to drive the addition of the stablecoin Fidelity Digital Dollar (FIDD) as a 5th Peg Stability Reserve and the creation of the accompanying gauge FIDD / crvUSD

Motivation:

Many relatively prosperous retail investors in USA already have Fidelity accounts through their employers. Fidelity is one of the largest financial asset managers in the US. Many large private and public employers based in the US offer their retirement and/or stock benefit plans through Fidelity. It has discretionary assets of over $6 Trillion USD.

It’s also been one of the most receptive large financial firms to crypto and digital assets, with work starting in 2014.

The first exposure of above mentioned retail investors to Defi will likely be through buying FIDD directly from their Fidelity account and going from there. Curve can benefit by being one of the first value add use cases for FIDD and capture first-time experiences of these new retail investors in the next few years.

Fidelity is considered a “serious business” type of financial platform, and the attitude of investors who use that platform will likely align with Curve’s approach to Defi.

https://newsroom.fidelity.com/pressreleases/fidelity-investments--expands-digital-asset-investment-lineup-with-stablecoin-launch--fidelity-digit/s/3b55e2d1-1dba-4120-9528-1e07e632f3f4

Specification:

Start with Debt Ceiling of 5M FIDD. Adjust from further proposals as needed.

For:

Capture liquidity from retail investors in USA who are getting their first crypto experiences from Fidelity. Strengthens crvUSD by providing another source of liquidity unrelated to the other 4x existing stablecoins.

Against:

There are many stablecoins in the Defi ecosystem - it’s important for the community to consider if adding one more stablecoin to the Peg Stability Reserve will give a benefit versus incentivizing addition of liquidity of existing Peg Stability Reserve assets.

Poll:

Proposal has not been formally created. I do not have enough veCRV to create a proposal. Once I do, I will look into getting one created.

1 Like