The World's First
Interest-Bearing Stablecoin Backed by LSD
Interest-Bearing Stablecoin Backed by LSD
Unleash the Power of LSD
The First Interest-Bearing Stablecoin (APY ~8.30%)
Stable & Safe
caUSD stability is maintained through a combination of overcollateralization, liquidation mechanisms, and arbitrage opportunities. These factors work together to ensure that the value of caUSD remains close to its 1 USD peg.
Interest Bearing
Holders of caUSD can expect to earn a base annual percentage yield (APY) of approximately 7.2%. This stable yield is attractive for investors seeking a steady income stream while maintaining exposure to the cryptocurrency market. Moreover, as the price of ETH increases, the yield generated by caUSD holders may also rise.
0 Mint/Loan Cost
Caelum Finance stands out from other stablecoin protocols by offering 0 minting fee and 0 loan interest for users. This feature allows users to leverage their ETH holdings and mint caUSD stablecoins without incurring any additional costs.
Yield Boost
Caelum will integrate with other DeFi aggregators to boost yield in V2 if required by the community DAO.
150% Collateral Ratio
Each 1 caUSD is backed by at least $1.5 worth of ETH/stETH as collateral, ensuring stability.
Censorship Resistance
caUSD is a censorship-resistant, 100% decentralized, fair and transparent stablecoin built on the Caelum Finance protocol.
FAQs
1. How can holders of stablecoins like USDT, USDC, and FRAX earn interest?
It's very simple. All you need to do is exchange your USDT for caUSD on a DEX. As long as you hold caUSD, Caelum will automatically calculate interest for you.
2. How is caUSD 1:1 hard pegged to 1 USD?
When caUSD price above 1 USD: If the caUSD price exceeds 1 USD, users can mint new caUSD by depositing ETH as collateral and then sell the newly minted caUSD on DEX. As more caUSD is sold, the market supply increases, pushing the price back down to 1 USD. Users can then buy back caUSD at a lower price or use it to repay their loans, realizing a profit from the price difference.<br/>When caUSD price below 1 USD: If the caUSD price falls below 1 USD, users can purchase caUSD at a discounted rate on the market and then redeem it within the Caelum Protocol for $1 worth of ETH/stETH. As users buy up the undervalued caUSD, demand increases, driving the price back up to 1 USD. Users can either hold the redeemed ETH/stETH or sell it, profiting from the price difference.
