Existing stablecoin protocols often have a very low maximum Loan-to-Value (LTV) ratio, which significantly limits leverage capacity. These protocols are typically dependent on governance or use inefficient algorithms for stability maintenance. Neper addresses these issues with our innovative algorithm that issues pUSD collateralized by ETH.
💸 Low Minimum Collateral Requirement or High LTV: Inspired by Liquity, we have developed a novel redemption system that maintains a hard price floor of $1. Unlike Liquity, this system does not significantly increase the effective Minimum Collateral Requirement (MCR).
📉 Negative Interest Rates: During bear markets, when borrowing demand is low and the protocol maintains a hard price floor, the value of the stablecoin can easily exceed $1 and remain there. To actively address this, we introduce the novel concept of an effective negative interest rate to stimulate borrowing demand. How does it work?
➕ Misc Features: A small aspect, but the protocol is designed with leverage traders in mind, allowing for the creation of multiple vaults enabling users to manage multiple strategies.
TLDR; 💵 Neper offers USD borrowing at a really high LTV / low MCR without losing stability.
Tracks Applied (10)
Arbitrum
Polygon
The Graph
Celo
Base
Chainlink
Alliance
Mantle Network
OKX
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