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