Virtue, a stablecoin borrowing platform, has recently launched on the Shimmer blockchain network, which is a Layer 1 staging network of the IOTA ecosystem. This platform offers unique incentives and benefits to its users, including 0 percent interest rates and over-collateralization.
Unlike other decentralized finance (DeFi) stablecoin platforms, Virtue’s stablecoin, called vUSD, maintains a fixed value equal to one US Dollar. This stability makes it a reliable option for transactions in the volatile cryptocurrency market. Additionally, Virtue does not charge compounding interest, allowing borrowers to take long-term loans without worrying about rapidly increasing interest costs. Instead, the platform offers transparent and affordable loan options, making it an economical choice for borrowers.
Virtue has enhanced the borrowing experience by introducing multi-collateral deposits. Borrowers can now deposit a variety of assets on Virtue to secure a loan, instead of relying on a single asset. This provides more flexibility and security to borrowers.
The platform operates using two tokens: vUSD and VIRTUE. vUSD is the stablecoin used for providing loans and always maintains a value of one US Dollar. On the other hand, VIRTUE is the platform’s utility token. Holders of VIRTUE tokens can stake them and earn fees generated from loan issuance and vUSD redemptions.
One of the key benefits of Virtue is its Stability Pool, which acts as a safety net for the system. The Stability Pool automatically sells risky assets when their value falls below a certain threshold compared to their collateral. This helps to maintain stability without relying on DEX liquidity or experiencing sudden price changes.
Users who stake vUSD in the Stability Pool are rewarded for helping with these liquidations and receive VIRTUE tokens. They can also stake the VIRTUE utility token and earn a portion of the platform’s fees as rewards.
Virtue prioritizes safety and has undergone audits by Trail of Bits and Coinspect. It has also been extensively tested for over two years, with assets totaling over $4.5 billion at its peak. The platform follows strict policies to minimize risks and conducts thorough code audits before launching.
Overall, Virtue’s launch on the Shimmer blockchain network brings a reliable and innovative stablecoin borrowing platform to the IOTA ecosystem, offering users attractive incentives and a focus on safety.