A suite of decentralized finance (DeFi) products, Yearn Finance, focused on generating high risk-adjusted returns for depositors of various assets has introduced a new protocol called StableCredit.
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According to an official announcement, StableCredit is a protocol that consists of tokenized debt stablecoins, lending, AMMs, and single sided AMM exposure "to create a completely decentralized lending protocol."
With the new protocol, users can provide any asset and create tokenized credit called StableCredit USD (can also support EUR, JPY, etc) to borrow other assets.
The process as follows:
- Provide amount (x) USDC;
- USDC price oracle is used to determine the USD value of 1 USDC;
- The protocol mints x * USD value StableCredit USD;
- The USDC and StableCredit USD is provided into the 50:50 AMM;
- The protocol calculates the system utilization ratio, up to a maximum of 75%;
- The utilization ratio (or 75% max) value of the supplied USDC is minted as StableCredit USD.
Yearn Finance's native token YFI became so popular that even Coinbase Pro, a crypto exchange for professional investors belonging to Coinbase, decided to list the token on the platform.
The listing comes just two months after the launch of the project.
YFI is the governance token associated with yearn.finance, which allows stakeholders to make decisions on the future direction of the project.
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