dUSD — the Denar dollar

dUSD is a dollar built the way Denar builds everything: the mechanics enforced by contracts, the risk stated out loud, and nothing promised that the reserve does not actually earn. The system is two tokens with one job each: That split is the engine. Every dUSD minted at the treasury is matched by reserve dollars that earn — in tokenized T-bills, in Denar’s own lending markets — and every dUSD the allocator lends out is matched by borrowers’ collateral. But only holders who opt in by staking collect. The dollar stays boring and composable; the yield concentrates on sdUSD.

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Where the yield comes from

The treasury holds the reserve in three places, each documented in The reserve:

1. A liquid USDG buffer — earns nothing, exists so redemptions never wait.
2. The Denar USDG vault — a Morpho Vault V2 that reaches the stock markets through dnUSDG and the isolated markets directly, and earns what borrowers pay in all of them.
3. SGOV, the tokenized 0–3 month US Treasury ETF on Robinhood Chain — earns the T-bill rate through the token’s corporate-action multiplier, the same mechanism the markets already handle.

Earnings above the reserve’s retained safety cushion are periodically harvested: minted as dUSD against the surplus that backs them and dripped to sdUSD stakers over seven days. The mechanics — and why the drip makes distributions impossible to snipe — are in Staking.

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Why the dollar ships second

dUSD is not late — it is downstream. sdUSD’s yield is the lending markets’ borrower interest (plus the T-bill sleeve), so launching the dollar before the markets have real borrowing demand would mean launching a staking rate with nothing behind it. The order is deliberate:

1. The markets first — live since August, operating in public: liquidations, corporate actions, monitoring.
2. The dollar on top — minted when its reserve has somewhere productive to work.

Waiting is not idle, either: Denar Points earned in the markets before launch carry priority access to dUSD’s first minting window. Lending and borrowing today is the queue.

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The design in five commitments

1. One dollar in, one dollar out. Mint and redemption are 1:1 against USDG at the treasury, not against a pool. The exit does not depend on market depth.
2. The reserve is valued pessimistically. A scheduled dividend is never counted before it is paid, and while any corporate action is scheduled or in progress the treasury neither buys, nor harvests, nor sells into it: it waits for the feed to catch up.
3. Distribution comes after solvency. A retained equity cushion — sized against the risky side of the reserve, not just liabilities — is never paid out, and no harvest is paid anywhere while the system as a whole is under-backed.
4. Operations are bounded. Reserve rotation is slippage-bounded against Chainlink and rate-limited by a rolling daily allowance; the redemption buffer has an enforced floor; once dUSD is outstanding, the price feed, the lending vault and new swap routes change only behind a one-day timelock.
5. The staking vault can never be emptied or bricked. The treasury opens sdUSD with a permanent seed nobody can withdraw, so a donation to an empty vault cannot lock the door and every staker can always exit in full; the seed’s unrecoverable slice of any reward is capped at 5%.

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Status and roadmap

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Addresses

Robinhood Chain (chain id 4663), deployed at block 54,516,394. The reserve’s other legs are existing contracts: USDG 0x5fc5…d168, the Denar USDG vault 0x338b…918c (a Morpho Vault V2 that reaches the stock markets through dnUSDG 0xF0E6…9050 and the isolated markets directly), SGOV 0x92FD…F9B5 and its Chainlink feed 0xa0DF…7A11. Follow @DenarMarkets and the changelog for what changes.