Over 92% of the stablecoin market is centralized: Many centralized companies can be shut down by regulations at any time (e.g., Paxos and BUSD). Even “decentralized” stablecoins like DAI are backed using other centralized stablecoins.Inflation loses stablecoin holders’ value: Stablecoin holders lost over $9 billion USD of spending power last year to inflation alone.Undercollateralized stablecoins are high risk: For example, the Terra/Luna crash cost investors over $60 billion USD.Most major decentralized stablecoins charge ongoing interest rates to mint, which slows adoption and costs their holders money.The failure of U.S. banks in 2023 controlled over $532 billion USD of depositor assets. People need a safer way to store their wealth.With these issues in mind, we set out to create a unique stablecoin that could solve these problems and created LendrUSD. LendrUSD is a decentralized stablecoin pegged to a US inflation index rather than the dollar, making it inflation-proof.Additionally, we expanded this idea to create tokens pegged to different commodity indexes such as oil/gas, real estate, gold, etc., providing users with a way to interact with real-world assets (RWAs) on the blockchain. The lending platform for LendrUSD and other RWA tokens is known as the Lendr Network.The Lendr Network incorporates the following features designed to resolve the previously mentioned issues:
- 0% interest rate to issue/borrow USDL and RWA tokens
- Decentralized and governance-free
- Inflation-proof stablecoin (USDL)
- On-chain tokens pegged to real-world asset indexes (e.g., gold, real estate)
- Overcollateralized with verifiable on-chain assets
- Creates rewards for holders from liquidations, issuance, and redemptions
- Redeemable for 1:1 collateral by anyone at any time
- Built-in reward incentives to complete liquidations
- Built-in reward incentives to maintain token pegs