New project | SOLID: I want to do the "Terra version of DAI" after the ecological reconstruction
With the serious de-anchoring of UST and the collapse of LUNA prices in May this year, most projects in the Terra ecology also "bankrupted their reputation" and gradually faded out of everyone's vision.
Recently, crypto KOL "Colin Talks Crypt" shared a new decentralized stablecoin project SOLID on Terra, and called it the hope of Terra ecology.“The Tornado Cash sanctions proved that centralized stablecoins are a failure, and the DeFi space has also shown a growing demand for decentralized stablecoins. If LUNA can recreate a superior stablecoin model that solves past problems, then it will There is a possibility of a comeback."
According to the project white paper, SOLID's goal is to become an over-collateralized, fully decentralized, "soft-pegged" stablecoin on Terra; SOLID mainly deposits mortgage assets (such as LunaX, etc.) on the decentralized lending protocol Capapult For minting, its stability mechanism is determined by the market:
If the price of SOLID is lower than $1, the system will increase the cost of borrowing SOLID by the user through the interest rate, thereby forcing the user to purchase SOLID tokens from the market to repay the loan as soon as possible;
Conversely, if the price of SOLID is higher than $1, the system will reduce the cost for users to borrow SOLID, thereby prompting users to borrow more SOLID to sell to the market to suppress the price.
From this point of view,SOLID's benchmark product is MakerDAO's decentralized stablecoin DAI, which is very different from UST's algorithmic dynamic adjustment of arbitrage generation mechanism.
In addition, according to Capapult's plan, the interest will be used to purchase SOLID tokens in the market and redistribute them to CAPA holders; the fees obtained by the platform will be used to repurchase and burn CAPA. CAPA is Capapult's governance token and enjoys voting governance rights.
At present, the Capapult project has not been officially released, and the specific time and operating rules are still unclear. However, the platform promises that early users will be airdropped, and 10% of the total supply of CAPA will be used for airdrops.
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