Wault Finance is one of the leading DeFi protocols on Binance Smart Chain and Polygon. It is one of the truly cross-chain platforms in the crypto space and has made major milestones in recent months,
What has attracted many to Wault Finance is the constant launch of new, improved products that provide users earning opportunities. Now, Wault Finance is set to launch its latest product, a stablecoin with a novel commerce-backed model called ‘’WUSD’’.
WUSD: an Innovative Stablecoin
WUSD is unique since it is not a fiat-backed, algorithm-backed, nor crypto-backed stablecoin. Instead, the stablecoin is pegged based on the guarantee of active commerce within the Wault ecosystem.
Since its launch, the WaultSwap Exchange(Wswap) has generated significant revenues and is ranked within the top 10 Dexes on both BSC and Polygon. Initially 90% of the value of WUSD will be backed by USDT deposits, while the remaining 10% will be backed by WaultSwap’s governance and trading-fee-sharing token(WEX).
This is interesting since WEX already exists and has a significant market cap on the WSwap DEX. The revenue generated from exchange will be used to support and stabilize the value of WUSD.
To ensure that WUSD’s value remains pegged to $1, Wault Finance has established four stability mechanisms. This includes (1)Treasury, (2)WSwap Emissions Support, (3)Wswap Trading Fee Support, and (4) WUSD Staking support mechanisms.
Wault also intends to implement governance in the future that will enable WEX holders to vote on existing stability parameters for WUSD. WUSD will first be launched on BSC and then the Polygon blockchain.
Over time, as WUSD proves stable, Wault intends to lower the USDT collateralization ratio from 90% and gradually increase the ratio of the commerce-backed token WEX. Furthermore, due to having an existing platform with one of the largest user-bases on BSC and Polygon, Wault Finance will be able to provide instant use-cases for WUSD, ensuring its adoption within…