U.Token is minted by staking collateral via Stabilize Protocol on Avalanche Network. U.Token is the USD-pegged stablecoin used to pay out loans on the Stabilize protocol. At any time it can be redeemed against the underlying collateral at face value.

Why are there different U.Tokens?

The different U.TOKEN will be minted by staking different collateral. Due to the unique mechanism design, each Trove of collateral is independent.
For example:
User A uses AVAX as collateral, and the name of the minted U.Token is U.AVAX.
User B uses WETH as collateral, and the name of the minted U.Token is U.ETH.

Why is the value of U.Token the same?

Although different collaterals troves independently, they are all minted under the Stabilize protocol mechanism. Regardless of the value of the collateral or how it fluctuates, the value of any U.Token is always the same(1 USD-pegged).
For example:
User A mints 100 U.ETH by staking ETH,
User B mints 100 U.WBTC by staking WBTC,
Then, 100 U.ETH = 100 U.WBTC = 100 USD.

What is the difference between each type of U.TOKEN?

  1. 1.
    The collateral is different.
2. Each U.token is a new ERC20 token contract.