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:
Conversion Fee Structure:
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.
Minting Cap:
Initial cap of 10 million USDA to manage supply.
Pre-minted USDA is deposited into the PSM contract before launch.
Redeeming Stablecoins:
Users can convert USDA back to USDT or USDC with a daily limit of 500,000 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.
D3M - Direct Deposit Module
What is D3M?
The Direct Deposit Module (D3M) enables direct minting of USDA into DeFi platforms to enhance liquidity and borrowing conditions. Unlike traditional collateral-based minting, D3M employs credit-based minting, allowing flexible supply adjustments.
Key Benefits:
USDA minted through D3M is allocated exclusively for lending platforms like Aries Market, ensuring safe and controlled usage.
Optimized borrowing rates → Lower borrowing costs on Aries Market than on Auro Finance, making it attractive for short-term borrowing.
Revenue & Ecosystem Growth → Interest and rewards earned from lending are reinvested into Auro Finance’s treasury and community incentives.
Phase 1 Implementation:
Initial Minting Cap: 2.5 million USDA
Supported Platforms: Aries Market & similar DeFi protocols
Flexible deposit/withdrawal mechanisms to manage supply and demand
Burn mechanism to remove excess USDA when needed
Algorithmic Market Operations (AMO)
Auro Finance's AMO dynamically adjusts USDA’s supply and demand, similar to Curve Finance’s MonetaryPolicy for crvUSD.
Initially, borrow rate parameters are set by the core team based on market conditions.
Future adjustments will require governance proposals & community votes.
To protect USDA’s stability, the borrow rate will be capped at 20%.
This system automatically adapts borrowing costs to ensure USDA remains pegged to $1 and maintains liquidity balance across DeFi platforms.
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.
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