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28 July 2021

How Wault Finance’s New WUSD Token Could Create a New Paradigm for Stablecoins

How Wault Finance’s New WUSD Token Could Create a New Paradigm for Stablecoins


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Their stablecoin WUSD will operate with a commerce-backed mechanism to mitigate the limitations and trade-offs that affect other digital assets, which we will explore.

What’s most interesting about Wault’s existing platform though, is it will serve as the foundation for the stability mechanisms that support WUSD.

The stablecoin stability mechanism will have 4 core components: the Wault Finance Treasury, WSwap Emissions Support, WSwap Trading Fee Support, and WUSD Staking Support.

These will not only guarantee that WUSD keeps its peg, but also will provide users with more yield and reward opportunities.

The first component of the stability mechanism, Wault’s treasury, will have three revenue sources to expand itself, creating a thicker treasury to support WUSD’s peg; 15% of the WSwap DEX trading fees will go to the treasury along with a 0.5% fee charged for every WUSD redemption.

Additionally, if WUSD moves off-peg, the treasury will receive more funding support from WSwap trading fees.

The emissions going to that WUSD pool will increase when WUSD’s price is below peg, stimulating buying demand to receive higher yields.

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