USDVE
The decentralized and over collateralized stablecoin
USDVE is created by users minting USDVE loans and it’s removed from circulation (burnt) when users repay their loan or partially redeem USDVE for the collateral assets.
When new USDVE is minted by the users, the platform charges a issuance fee between 0.5% and 3%. In a situation when the demand for USDVE is lower, and the price of USDVE moves below 1 USD, the issuance fee is increased, to curb the supply and bring its price back to 1 USD.
Also, when the demand for USDVE is lower and the USDVE price is below 1 USD more partial redemptions are expected. This brings the supply of USDVE down and increases the demand for it, bringing its price back to 1 USD.
The supply of USDVE is completely decentralized and independent of the Vauledge DAO or any other entity. Vaultedge users are the only ones controlling the number of USDVE being minted and burnt in their Vaults.
Last updated