Guides to Blockchain Related Apps
19. USDEOS Duo-Token Stablecoin Platform
PIZZA-USDE is a duo-token stablecoin platform that uses the EOS blockchain technology. The platform generates and issues stablecoin named USDE that is pegged 1:1 to USD currency by collateralizing crypto-based assets using smart contracts with conservative Collateralization ratios. To ensure that the liquidity of USDE tokens and general collateral pool are adequately reinforced, the system rewards native cryptocurrency token named “PIZZA” to users who committed crypto-based assets to issue USDE tokens.
Anyone can purchase USDE tokens from Over The Counter (OTC) dealers with fiat currencies or from an exchange with cryptocurrencies. Alternately, the user can generate USDE tokens by creating a Collateralized Debt Position (CDP) by locking in his/her collateral. The goal of the USDE system and token is to provide global users a stablecoin to avoid risk and use as electronic cash on EOS DApps, wallets or exchanges.
PIZZA-USDE System Roles
1. USDE Issuers: Core users or borrowers that issue USDE tokens by collateralizing crypto-based assets to smart contracts and maintaining a rational Collateralization Ratio. They are the risk takers who obtain rewards from Issuer Reward and are expected to charge some amount of premium for trading USDE stablecoin to cover the risks.
2. USDE Token Holders: Core users who acquired USDE token with collateral or via token trading. They may purchase USDE tokens from Issuers if the extra premium is reasonable instead of generating tokens themselves to risk losing their assets.
3. PIZZA Token Holders: Stakeholders that can stake PIZZA tokens to acquire voting power and become voters. They can influence system changes or governance including the election of PIZZA council members.
4. USDE OTC Dealers: Platforms that provides a gateway for users to trade fiat and USDE tokens. OTC dealers will be rewarded with PIZZA tokens for their roles.
5. USDE Resource Pool: USDE tokens in this resource pool will be used for stabilizing USDE price and collateral liquidation.
Issuing USDE Tokens
To issue a USDE token, the issuer will need to provide the following information to the CDP management platform:
1. Amount of EOS coins to pledge.
2. Expected amount of USDE tokens to receive.
3. Corresponding Collateralization Ratio.
The USDE system then submits the collateral with the above information to the EOS Collateral Smart Contract which subsequently releases USDE tokens to the Issurer. Issuers needs to maintain a healthy Collateralization Ratio of their CDP because EOS Liquidation Smart Contract will be activated if it drops below the required minimum ratio during market fluctuations.
Issuer Reward Contract rewards PIZZA tokens to users with pledging behaviors, these users operates by maintaining their CDPs to claim PIZZA rewards periodically every 2 weeks. Users can delay claiming to accumulate their claims until the corresponding CDPs are closed. After the corresponding positions close, unclaimed rewards will become non-claimable. The size and duration of the CDP together with Annual Issuer Reward rate will determine the amount of rewards a user can get.
The USDE Ecosystem partners with major exchanges to collect the weighted median price feeds according to their reputation and trade volume. Their roles are reported to include the settlement of default collateral as well as risk hedging of CDPs.
USDEOS System income accumulated from handling fees, liquidation penalty and earnings from USDE Resource Pool will be used together with the Genesis Fund to respond to market emergencies. After required maintenance costs are deducted, the remaining income will be distributed as dividend to PIZZA tokens holders based on the number of staked PIZZA tokens they own. For example, if there are a total of 10000 staked tokens in the ecosystem and you staked 1000 tokens, you will be entitled to 10% dividend. The total supply of PIZZA is reported to be 1 billion tokens.