Introducing the Duet Protocol 3.0 Series — Part III

9 min readDec 31, 2021

This article is part III of the Duet Protocol 3.0 Series. If you are interested in reading the 1st part, follow the Duet medium.

Part 1

Vision
Challenges
Introduction
Overview

Part 2

Key components
Value propositions
Utilities of DUET
Duet Bond

Part 3

Roadmap
Token Allocation
User guide
F&Q

Roadmap

User Guide

1. Connecting Wallet

Connecting a wallet is a must step for a DAPP product. Currently, we only support MataMask wallet connections. We will gradually support other wallets.

The procedure for connecting a wallet is as follows:

Check if metamask wallet is installed. Take Chrome, for example, you will find a corresponding icon in your plugin list if the wallet is installed.

If not installed, please click find the link below and install metamask for your browser. Link:https://metamask.io/download.html

Once you have installed the wallet, please create an account following wallet instructions or import an existing account.

2. Configuring the corresponding network: Check if a supported network is already added to your wallet. For the moment, the network we support is Binance Smart Chain(BSC). If not, please click the link below to configure your matamask wallet. Link: https://academy.binance.com/en/articles/connecting-metamask-to-binance-smart-chain

3. Selecting Network: Switch the wallet network to BSC mainnet on the wallet interface, as shown in the following:

4. Connect the wallet: click the connect wallet button at the top of the page, and follow the instruction to connect your wallet to our platform.

2. Introduction of the Web page

The entire web page is shown as follows:

The whole web page is divided into two parts: the header and the body.

The header contains the logo and personal information. Clicking on the Logo will jump to the default page of the system, and the user can view the wallet information by clicking on the wallet address.

The wallet information contains the abbreviated wallet address. The user can copy the user’s wallet address by clicking the “copy address” button for other purposes. Clicking View on Explorer can view the detailed information of the wallet in the current network block browser. Click Disconnect to disconnect the platform from the wallet.

The main body is divided into a menu bar on the left and an operation area on the right. The menu bar contains all the function menus of the current platform. Click the menu to enter the corresponding function page. (For now, only DUSD is available, that is, the function of stablecoin minting and redeeming.)

For the operation, please refer to the corresponding function instruction.

3. Demo

3.1 DUSD

Users can either mint synthetic stablecoin dUSD or redeem USDC or BUSD with the dUSD they own. By default, the minting module is displayed. Users can click on the Redeem button on the top left corner to switch to the Redeem module.

The Mint function is to use the stablecoins supported by Duet to mint Duet USD(dUSD) at a 1:1 rate. The Redeem module allows users with the corresponding Minting price of Mint for the sale of platform currency at a price of 1:1.

The information display module is to display the latest DUSD related news. Through this, users can better decide on their dUSD in time, such as investing, mining, buying, selling, etc.

3.1.1 DUSD-Mint

The Mint function is to use the external stablecoins supported by this platform to mint our stablecoins at a 1:1 rate. In simple terms, users can use the stablecoins on the external platform to purchase the system stablecoin at a price of 1:1.

Currently we support the exchange function of BUSD and USDC to DUSD. Users can choose from the list according to their needs.

After selecting the currency you want, you first need to approve the currency if you want to buy DUSD. Click the Approve button and follow the instructions of the wallet to proceed to the next step to complete the user’s approval of the platform.

After approval, the user can see that “Approve now” becomes “Mint”.

We provide users with two input boxes that have the linkage function, that is, the user can roughly calculate the amount of currency available by entering the amount of currency consumed (DUSD). We also provide users with their current balance of each currency, in case the user exceeds the budget. The specific information is shown in the figure below.

We provide the MAX button in the input box for currency consumption. Click MAX to automatically enter the user’s balance amount into the input box. The user can also click the X button to clear the input information.

In the input box where the currency is obtained, we provide users with tip tools. The user can use the mouse to hover over the “!” to view it. The system evaluates the result if the current transaction occurs. As the following picture shows:

After entering the qualified value, click Mint to redeem.

The balance will change after the transaction is completed.

3.1.2 DUSD-Redeem

The Redeem function is used for the 1:1 conversion of our stablecoin to the external stablecoin supported by the platform. Simply put, users can use our stablecoin to purchase the external stablecoin at a price of 1:1.

Currently, we support the exchange function of DUSD to BUSD and USDC. Users can choose from the list according to their needs.

After entering the qualified figure, click Redeem to redeem.

The balance will change after the exchange is completed.

Frequently Asked Questions

1) What is the DUET token?

Name (SYMBOL): Duet Governance Token (DUET)

Ethereum (ERC-20) contract address: https://etherscan.io/token/0xd69ae79b01c4af7f19b9a824e5643363b202b3a1

Note: $DUET token is originally issued on Ethereum, and the product would be multichain deployed, firstly on BSC, then Ethereum, and other EVM compatible chains.

2) Why do you start the Duet Protocol?

The emergence of synthetic assets is a self-evolution of DeFi, which is expanding from trading of native digital assets to a broader range of physical assets, relying externally on Oracle to depict price fluctuations of physical assets, and internally by DEX to enable free exchange with no slippage and high depth.

Duet’s mission is to help “price”of physical assets that can be delivered on-chain. Under Duet’s synthetic asset model, there is no longer a need to pledge or escrow the spot of the underlying asset, but to generate the price of the asset on the chain based on the prophecy machine. Thus, the protocol can create financial derivatives with almost zero friction cost, reduce transaction costs under the traditional territorial financial system, and “soft anchor” the price index of multiple assets through user arbitrage behavior.

From a collateral perspective, it is important for the existing DeFi industry to include asset classes that are negatively or uncorrelated with the bull and bear cycles of digital assets in the market. This will reduce the leverage of the crypto-world financial system while diversifying the risk of price volatility in a single market.

From an investment product perspective, the idea of allocating quality assets from different capital markets around the world with just one digital wallet is coming to fruition for investors, creating a trillion-dollar market, from Bitcoin to S&P 500, from Tesla stock to gold, with a wide variety of derivatives such as futures and insurance that can be freely designed to exchange price information on a 7X24 basis.

3) What’s your product-market fit?

As blockchain technology and decentralized finance become increasingly adopted in a multi-chain environment, an inevitable challenge is the segmentation of liquidity, where liquidity of the crypto market is spreaded on different blockchains and different DeFi protocols.

As an emerging asset class, receipt tokens like Uniswap LP tokens or compound deposit receipts, are illiquid and poorly utilized as a financial asset. We call those idle assets which are not capital efficient “Flat Assets ”.

Duet Protocol (Duet) is a synthetic asset protocol built on a capital reserve system that unleashes liquidity to DeFi protocols. Duet treats single assets such as BTC/USDT/DAI and receipt tokens such as WBNB-BUSD LP as collateral, and credits users with liquidity in forms of synthetic stablecoins dUSD and other synthetic assets.

4) What are your advantages over the competitors?

The Duet protocol is a synthetic assets minter built on a Yield Aggregator that accepts receipt tokens such as uniswap LP or Compound cToken as collaterals and generates additional liquidity and yield based on real use cases of synthetic assets.

Duet protocol provides investors with options to diversify portfolios to a variety of asset classes in just one crypto wallet. Compared to a typical defi 1.0 project that competes for liquidity with unsustainable token incentives, by accepting receipt tokens, Duet protocol becomes a liquidity provider for deifi protocols. Liquidities that is locked up in other defi protocols can now be reused to generate additional yield by minting synthetic assets.

-Generally, how can I benefit from Duet Protocol as a common user?

As mentioned earlier, we divide target users into 3 categories, so 3 different use cases respectively:

-For liquidity providers

Automated reinvesting: automatically reinvests rewards from the receipt tokens and enhancing overall return

Free line of credit: Mint dUSD free of interest, use dUSD to acquire additional exposure to more assets or to simply spend it without having to sell their positions

Yield on dUSD lending pool: Mint dUSD and deposit in lending pools to earn additional yield on top of the automated reinventing

Reward on dUSD AMM pool: Mint dUSD and provide liquidity to designated dUSD AMM pools to earn reward.

-For crypto investors

Open Leverage Positions: Use crypto assets as collateral to mint dUSD and subsequently acquire additional exposures

Yield Farming: Through Duet, crypto investors can wrap their holdings into receipt tokens and receive rewards typically received by a liquidity provider

Diversification: Gain exposure to assets that are less correlated with the crypto market without having to move liquidity out of the crypto market

-For third-party DeFi protocols

They are able to grow their TVL by collaborating with Duet protocol, enhance returns for their liquidity providers, generating liquidity and use cases for their existing liquidity providers.