AIP 13: Stablecoin Swap

Migrated from AIP 13: Stablecoin Swap · Issue #13 · airswap/AIPs · GitHub

Summary

Su Zhu of Three Arrows Capital recently tweeted a “stablecoin swap” idea for large stablecoin swaps at a 1:1 rate. The AirSwap community has expressed interest in this idea, so we’re capturing this as an AIP here for further discussion.

There are not currently contributors available to work on this product, but if the proposal is framed in sufficient detail, a bounty could be offered for its design and implementation.

Specification

stablecoin swap: USDC, BUSD, TUSD, HUSD at 1:1 at 2bps cost, assuming you’re willing to accept non-instant, up to $10m
your coin is locked in the SC; opp side is any of the top MMs who can create/redeem these at 0 cost. the fastest-to-complete the deal also wins token reward
any of those stablecoins : USDT at 1:1 at 5bps cost; will sit there as an order until anyone elects to trade against it. so effectively you’re either bidding 1.0005 or offering 0.9995 on usdt/usd

A web app could be built that implements the above rules and uses an AirSwap Delegate smart contract on the backend.

Rationale

There appears to be public interest in this product, but we should validate in more detail and potentially speak with other hedge funds and crypto investment firms to learn more about this problem and ensure that the correct solution is built.

Copyright

Copyright and related rights waived via CC0.

We coordinators believe this is an interesting idea but it should be executed through an integration with stable coin ‘minters’. Need to start dialogue with hedge funds and makers to better understand the problem. This could be a feature in the web app platform - tbd. As such @don to change status to deferred.