Stablecoin (USDY) - Coming Soon!

USDY is the decentralized, overcollateralized stablecoin of the Yieldra ecosystem. Unlike traditional lending models where borrowing rates fluctuate unpredictably, USDY introduces a new level of both certainty and flexibility for users, depending on what the user is after.

USDY is minted by providing liquidity into the specialized USDY module, with both fixed-term and variable-term borrowing options determined by the DAO. This makes USDY one of the most adaptable stablecoins in DeFi, giving users choice while ensuring transparency in the cost of borrowing.

Key Features

1. Overcollateralized & Decentralized

• Every USDY token is backed by excess collateral deposited into the USDY module

• No reliance on centralized issuers, issuance and redemption are governed by smart contracts and DAO oversight

2. Fixed & Variable Interest Options

• Fixed Term Borrowing: Users lock in a guaranteed interest rate for predictable costs over time for a set period of time

• Variable Term Borrowing: Users access more flexible borrowing tied to market conditions for any amount of time

• Both models are set and adjusted by the Yieldra DAO, balancing stability with adaptability

3. Certainty in Lending

• One of the major issues in DeFi today is that lending rates offer no certainty to borrowers or lenders

• Yieldra solves this by introducing fixed-rate borrowing alongside variable options, giving users clear expectations while still leaving room for market dynamics

4. DAO-Governed Monetary Policy

• Rates, collateral parameters, and issuance rules are controlled by the Yieldra DAO

• This ensures a transparent, community-driven monetary policy for USDY

5. USDY <> USDT Conversions

• Users can convert USDT directly into USDY at any time for a small fee

• Users can convert USDY back into USDT (provided there is sufficient liquidity) for a small fee

Why It Matters

Most decentralized stablecoins struggle with either volatility in borrowing costs or centralized control. USDY offers the best of both worlds: decentralization, overcollateralization, and predictable rates.

By letting users choose between fixed and variable borrowing, Yieldra provides certainty where it’s needed while maintaining flexibility for those who want it.