DeFi Phase 2: STP Stablecoin and DAO
Nov 29, 2020 · 2 min read
Our recent activity in DeFi has focused on providing education and access for individuals to interact with DeFi protocols including lending, trading and financial services and engaging in strategic partnerships with different DeFi protocols. Building upon our previous DeFi initiatives, we are now ready to enter into our next phase in DeFi with the creation of USTP, a stablecoin within the STP Ecosystem and the launch of STP DAO.
Why launch a stablecoin (USTP)?
The interaction with DeFi protocols both outside and inside the STP ecosystem requires a reliable, non-volatile asset which are exemplified in a stablecoin. The most popular DeFi protocols and optimal DeFi strategies all utilize stablecoins like USDC, USDT, and DAI. So as more DeFi protocols are integrated in the STP Ecosystem, the increased need for a stablecoin became more and more apparent.
What is USTP?
USTP is a stablecoin designed for usage in the STP Ecosystem. USTP is the first step in developing the additional DeFi features in the STP Ecosystem. It will allow users to earn yield, leverage lucrative DeFi strategies and transact across multiple platforms both within (i.e. Blockzone) and outside our ecosystem (i.e. ChickenSwap). USTP is over 100% backed by STPT. A greater collateral amount is required in order to reduce the risk of liquidation in case of price volatility.
How does USTP benefit STPT Holders?
The inclusion of a stablecoin into the STP ecosystem will benefit STPT holders in a multitude of ways. Most importantly, STPT will be the governance token for the USTP protocol, giving holders the ability to vote for proposals that will shape the future of USTP. Value created from future fees that may be generated through USTP growth and usage will also accrue to STPT holders. The governance decisions of the USTP protocol and ecosystem around it will go through the STP DAO where users must stake STPT in order to participate.
What is STP DAO?
The importance of decentralization STP DAO is the mechanism for decentralized governance in which STPT holders will help dictate the direction of important protocol decisions including USTP and the respective DeFi platforms that utilize USTP. Users stake STPT in the STP DAO in order to create and vote on proposals. The exact details and stake requirements will be released soon.
DeFi is a system of open and permissionless interlocking financial products. Built on Ethereum, DeFi provides an overlapping network of dApps and smart contracts with a focus on financial applications such as trading, exchanging, borrowing, and derivatives.
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