Protocol Architecture

The USDi protocol is built upon three core pillars that ensure stability, interoperability, and profitability for users.

Overcollateralization

USDi maintains a 312% collateral ratio, meaning that every USDi token is backed by collateral assets worth at least 312% of its value. This high collateralization provides a significant buffer against market volatility and ensures that the value of USDi remains stable.

• Automated Position Management: The protocol automatically adjusts collateral positions to maintain the target collateral ratio.

• Liquidation Mechanisms: In the event of under-collateralization, automated liquidation processes are triggered to protect the protocol's integrity.

• Risk Mitigation: By overcollateralizing, the protocol minimizes the risk of insolvency and enhances user confidence.

Cross-Chain Implementation

USDi is natively implemented across 7 blockchain networks, including but not limited to Ethereum, Binance Smart Chain, Solana, Polkadot, Avalanche, Fantom, and Polygon. This cross-chain functionality enables:

• Seamless Asset Transfers: Users can move USDi tokens across different networks without the need for centralized exchanges.

• Interoperability: Integration with various DeFi platforms and services across supported chains.

• Atomic Bridge Functionality: Ensures secure and instantaneous cross-chain transactions through atomic swaps.

Yield Generation

The protocol leverages diversified lending strategies to generate an average yield of ~27.2% APY for USDi holders.

• Automated Deployment: Collateral assets are automatically allocated to high-yield DeFi lending protocols.

• Dynamic Rebalancing: The protocol continuously monitors and adjusts allocations to optimize yield and manage risk.

• Diversification: By spreading assets across multiple platforms, the protocol reduces exposure to any single point of failure.