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WUSD: The Next Generation Stablecoin For DeFi

WUSD: The Next Generation Stablecoin for DeFi

press release

PRESS REELEASE. Wault Finance has proven its innovative nature in the DeFi sector by creating multiple products. This protocol is one the fastest-growing projects in DeFi, offering users multiple yield farming and stake opportunities.

Now, Wault intends to expand its ecosystem with the development of its stablecoin WUSD. WUSD is a next-generation stablecoin that uses an innovative model to ensure that it holds its peg to the dollar and is designed to provide use-cases for holders. This article will discuss the main features of this stablecoin.

Commerce-backed stablecoin

WUSD is different from other stablecoins that are fiat-backed or algorithmic stablecoins. WUSD is supported by crypto-assets in a sustainable manner.

The stablecoin is backed by USDT and Wault Finance’s native token WEX at a ratio of 9:1. This means that 90% of WUSD is collateralized by USDT deposits and the remaining 10% from WEX. This ensures the stability of the stablecoin and guarantees that holders do not lose more than 10% of their capital in the worst-case scenario of extreme volatility.

WUSD’s process is as follows. When a trader deposits 1000 USDT to purchase WUSD, 900 USDT is deposited by the smart contract to WUSD’s Treasury, and the remaining 100 USDT is used to buy WEX tokens. These tokens are kept in the Treasury. The protocol uses a portion to generate yields to strengthen the Treasury. This ensures WUSD is always backed with sufficient collateral and also earns yields to strengthen the Treasury. This creates a positive cycle in the ecosystem by locking up WEX and buying it back.

When the user wants to exchange their 1000 WUSD for USDT, the WUSD is burnt from circulation, and the user receives back 1000 USDT, with 100 of it bought back from WEX according to the market price. This Treasury is combined with the following stability mechanisms ensures that WUSD stays pegged to the USD. It also prevents the risk of internal minting or burning of governance tokens.

WUSD Stability Mechanisms

Wault has also deployed four different stability mechanisms that ensure WUSD maintains its peg. These include the Treasury, WSwap Emissions Support and WSwap Trading Fees Support. WUSD Staking Support is also included.

The WUSD Treasury provides collateralization and additional stability mechanisms to strengthen the Treasury. 15% of the trading fees from WSwap, one of the top DEXs on BSC and Polygon goes towards the treasury.

If WUSD moves off-peg a portion goes towards the Treasury to support it so that arbbots can return WUSD back to peg. This is a guarantee outcome, as long as the Treasury remains full.

WUSD staking is also a major way that Wault intends to maintain the peg of the stablecoin. Wault plans to encourage early WUSD holders with WEX emissions. WUSD’s peg will be stabilized by the emission rate. The peg will shift from $1 to increase or decrease emissions, which will modulate the incentives to stake WUSD. At the moment, WUSD-BUSD staking on Wault earns 34% APR, a very high yield for stablecoins in DeFi. The WUSD-BUSD pool has already amassed up to $40 million TVL since its recent launch.

Wault is also working on new partnerships to establish additional pools and use-cases for the stablecoin, and is making headway in doing just that with its ecosystem of partners.

Finally, WUSD is coming to Polygon, launching on Wault’s cross-chain platform there.

Future developments

Wault has so far been able to become one of the top DEXs on two different blockchains. Wault reached over $1.5 Billion in TVL during the heights of the crypto bull market. The team behind the project made great strides in timely releasing products in the recent months.

Wault has revealed that it aims to continue building integrations to expand to more blockchains. It also plans to launch an online lending platform in order to expand the existing DeFi products. Wault is also busy supporting the ecosystem. Wault recently launched a Moon Fuel Grant Program to support new projects, as well as a Scholarship Program to support low income gamers to make a living through play-to-earn games. To learn more about Wault Finance, visit its social networks below:

Website Twitter Telegram Discord Medium Docs


This is a press release. This is a press release. Readers are responsible for their own research before making any decisions about the promoted company, or any of its affiliates. Bitcoin.com does not assume any responsibility for any loss or damage caused by the content, goods, or services mentioned in this press release.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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