Introduction
Stabilize Protocol (Defi 2.0)
Stabilize is a decentralized borrowing protocol that allows you to draw interest-free loans against Crypto-Assets( basic asset & ibTKNs) used as collaterals.
Loans are paid out in U.TOKEN (a USD pegged stablecoin) and need to maintain a minimum collateral ratio of 110%.
In addition to the collaterals, the loans are secured by a Stability Pool containing Stabecoins and by fellow borrowers collectively acting as guarantors of last resort.
Stabilize takes advantage of Liquity’s and Polyquity's unique economic incentives to create a robust and scalable stablecoin.
Stabilize will be launched on the Avalanche network first.
Endorsement
Stabilize Protocol is endorsed and licensed by the PolyQuity team, a fork of the Liquity protocol in the Polygon network, who have designed a new mechanism and economic model to upgrade the protocol to support multiple collateral. PolyQuity has tens of millions of dollars TVL and a strong community presence.
Core Features
Support multiple asset collateral
Run in multiple chains
By staking Collaterals Assets, Stablecoins (U.TOKEN) of zero interest-fee is minted to improve capital utilization.
Minimum collateral ratio of
110%— more efficient usage of deposited Collaterals assetsDirectly redeemable — U.Token can be redeemed at face value for the underlying collateral at any time
Token ($SET) holders can earn U.Tokens (Borrowing fee), Collaterals (Redemption fee) and $SET(Transfer fee).
Comparing to Other Lending/Stablecoin protocols：
Motivation
Decentralized lending /stablecoins have always been the infrastructure in the DeFi world. Stabilize Protocol is providing an innovative solution 2.0 for them.
With decentralized borrowing, Stabilize Protocol will become a “liquidity black hole” as users drop in their entire portfolio of LP tokens, staked assets, and base level ERC-20 tokens.
Stabilize has the potential to become one of the largest protocols in DeFi.
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