It would be a huge improvement to AUSD to allow using collateral like BTC or ETH. Being able to borrow some AUSD and getting a 12% yield for staking AUSD would be huge returns for staking BTC compared to other options.
Lending BTC on Alpaca pays less than 1%. This would allow lenders to make much more!
The team stopped adding collateral options because BNB did not particularly get a lot of traction and we wanted to fix the pegging issue first.
But BTCB/ETH have lower APY earning options on BNB Chain so it might make sense to add them as collateral options if enough people ask for it, indicating that demand is real