dTRINITY has officially launched its subsidized stablecoin lending protocol on the Fraxtal layer-two network. This is an exciting development for liquidity in decentralized finance (DeFi). The goal? To lower borrowing costs and boost yields for stablecoin users.

At the heart of dTRINITY is its native stablecoin, dUSD. Think of it as a bridge connecting its money markets, especially dLEND (a version of Aave), with external liquidity pools like Curve. dUSD is fully backed by an on-chain collateral reserve. This reserve includes stablecoins like USDC, FRAX, and DAI, as well as yield coins like sFRAX and sDAI.

Here's how it works: The reserve generates income, and that income is used to provide interest rebates for dUSD borrowers on dLEND. This means lower borrowing costs for users. It also encourages more borrowing and helps lenders earn better yields.

dTRINITY's launch on Fraxtal is a strategic move. Partnering with Frax allows them to enhance liquidity and user incentives. Fraxtal is an EVM-equivalent rollup, which means it has a scalable smart contract platform. Users enjoy fast transaction speeds, low gas fees, and strong network security. Plus, there are unique rewards for using the network.

Looking ahead, dTRINITY plans to expand to Ethereum and other emerging blockchains. This will strengthen cross-chain liquidity and interoperability as Fraxtal grows.

Here are some key features of dTRINITY:

  • Subsidized interest rate model: This innovative model reduces borrowing costs on dLEND compared to other protocols. In some cases, borrowers could even benefit from negative interest rates.
  • Liquidity incentives: dUSD lenders and liquidity providers receive rewards from both the protocol and external partners. This boosts liquidity in the ecosystem.
  • Security and risk management: dTRINITY has completed audits with top blockchain security firms. They also prevent rehypothecation of collateral to minimize risks. dUSD is the only asset that can be borrowed on dLEND, ensuring safety.
  • Strategic partnerships: Besides working with Frax, dTRINITY plans to collaborate with other major DeFi protocols. This could expand dUSD's reach and increase demand.

The core team behind dTRINITY includes the co-founders of Stably. They've been working on this project since the second quarter of 2024. Earlier this year, dTRINITY won first place at both the ETHVietnam and Fraxtal Hackathons. They also have advisors from leading DeFi projects, which adds significant expertise to their development.

If you want to learn more, check out the dTRINITY website and follow them on X.

Keep in mind, dTRINITY is not available to residents of certain countries, including Belarus, Canada, Cuba, and the USA, among others. The information provided here is not legal or financial advice. Past performance does not guarantee future results. Digital assets and DeFi protocols come with risks, including potential loss of funds. Always do your research and consider seeking professional advice before diving in.

About dTRINITY: dTRINITY is the first subsidized lending protocol aimed at reducing borrowing costs and enhancing yields for stablecoin users in DeFi. Powered by dUSD, a decentralized stablecoin backed by a reserve of yield coins, dTRINITY is now live on the Fraxtal layer-two network. Plans for future expansion to Ethereum and other networks are already in the works.

Contact: Kory Hoang, core contributor at dTRINITY Foundation Ltd.