Indigo Proposes USDrf Swaps for iUSD

One proposal wey dem publish on October 2 dey ask Indigo DAO make dem approve RealFi dollar stablecoin as PSM collateral. If dem integrate am, e go connect the RealFi protocol wey just launch recently with Indigo synthetic dollar through smart contract for Cardano.

Indigo PSM Swaps and Fees

Indigo na decentralized synthetic assets protocol. Im iUSD dey follow the U.S. dollar price and people fit get am through collateralized loans, buy am for market, or use the Peg Stabilization Module wey dem introduce for Indigo V3.

Through the PSM, users go deposit approved asset to mint the synthetic dollar. When person wan redeem, na the reverse: dem go burn the synthetic tokens and return collateral from the module reserves. This one dey create arbitrage route when the synthetic asset move comot from im target value.

The proposed pair go exchange tokens at 1:1 before 0.5% minting fee or 1% redemption fee, wey dem go subtract from the output. The fixed ratio dey remove swap slippage.

The proposal deliberately set higher redemption fee to discourage short term arbitrage wey fit drain reserves and to make minting more attractive. Fees go flow enter the DAO treasury.

RealFi Collateral on Cardano

RealFi launch for Cardano mainnet on October 1. Im base stablecoin dey serve payments, trading, and collateral use cases, while separate staked token dey give exposure to reserve income.

RealFi describe reserve portfolio wey dem anchor with U.S. Treasury bills and tokenized government money market funds, plus liquid floating rate credit and short term, senior secured private credit.

To add im stablecoin to the PSM go create another reserve asset for Indigo synthetic dollar. Both tokens dey native to Cardano, so the exchange route wey dem propose no go need cross chain bridge.

DAO Review and Reserve Controls

The document dey listed as discussion item for Clarity. Indigo governance framework give the DAO authority to approve PSM pairs, adjust fees, and suspend minting or redemption.

PSM redemptions go limit reach the RealFi tokens wey the module hold. Direct redemption with RealFi issuer na separate process wey dem restrict to approved institutional participants; retail exits go depend on decentralized exchange liquidity.

The proposal wey dem publish leave sections on redemption access, reserve attestations, and audits without detailed supporting information.

Im removal criteria include prolonged loss of the dollar peg, discontinued reserve attestations, materially impaired backing, or legal action wey dey affect redemptions. These provisions go give the DAO reason to pause or remove the pair as the collateral condition dey change.