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as of 17/06/2023
USH is a decentralized, multi-collateral stablecoin that can initially be minted using blue-chip assets such as WETH, EGLD, and USDC, supplied to our Lending Platform. The value of our stablecoin is pegged to the U.S. Dollar, with each USH being equivalent to $1. This parity with the U.S. Dollar is sustained through market efficiencies, assuring a reliable, stable value.
Being a decentralized stablecoin operating on the MultiversX Blockchain, USH is minted by users who provide collateral at a predetermined ratio. This process ensures the stability and value of USH, backed by an assortment of solid assets. When these users either liquidate or repay their borrowed positions, the corresponding USH is returned to the platform and effectively 'burned', or removed from circulation. This mechanism helps maintain the stablecoin's parity with the U.S. Dollar.
It is worth noting that interest payments made by USH minters are not directed into a typical Reserve Factor, as is the case with borrowing other assets. Instead, these payments are funneled directly into our platform's treasury, and the principal sum is burned. This ensures a continuous flow of resources into the platform while regulating the supply of USH.
In light of recent market volatility, there is a rising demand for stablecoins that are decentralized, over-collateralized, and flexible. As a stablecoin that is controlled by our platform's Governance, USH is well-positioned to meet this demand. With community support, USH has the potential to evolve into an integral component of the DeFi ecosystem, providing stability amidst market fluctuations.