USDA: A Decentralized, Collateral-Backed Stablecoin

USDA is a decentralized, unbiased stablecoin soft-pegged to the US Dollar. Users can collateralize assets through Auro Finance and borrow USDA, ensuring stability through collateral deposited into CeVault, which acts as Auro’s collateral vault.

Price Stability Module (PSM)

The Peg Stability Module (PSM) ensures USDA remains stable by facilitating seamless conversions between centralized stablecoins (USDT, USDC) and USDA.

Key Features:

1. Conversion Fee Structure:

2. • Users can mint USDA at a 1:1 ratio using USDT or USDC with 0% mint fee initially.

   • The 0% fee is temporary; if USDA trades at a premium, a small mint fee (increments of 0.01%) may be introduced.

3. Minting Cap:

4. • Initial cap of 500.000 USDA to manage supply.

   • Pre-minted USDA is deposited into the PSM contract before launch.

5. Redeeming Stablecoins:

6. • Users can convert USDA back to USDT or USDC with a daily limit of 100,000 USDA.

   • A 2% conversion fee applies, encouraging users to swap USDA on PancakeSwap for better rates.

The PSM helps USDA maintain a strong 1:1 peg by balancing its liquidity with centralized stablecoins.

USDA Liquidity & Circulation

Users can obtain USDA by: ✅ Borrowing against collateral in CeVault ✅ Buying from brokers, exchanges, or DEX liquidity pools

Once acquired, USDA functions like any other cryptocurrency—used for payments, transfers, and DeFi applications.

Auro Finance’s comprehensive stability mechanisms (PSM, D3M, AMO) make USDA a highly reliable, capital-efficient stablecoin, driving DeFi adoption on Aptos.