- Nakama has launched Virtue, an over-collateralized stablecoin platform with 0% interest rates on the Shimmer Network.
- Virtue uses two tokens, vUSD as a stablecoin and VIRTUE as a utility token, which offers unique advantages to its users, including over-collateralization, 0% interest rates, and diverse collateral assets.
Breaking New Ground with Virtue
In a decisive stride forward, Nakama introduces Virtue, an over-collateralized stablecoin platform boasting 0% interest rates, hosted on the Shimmer network. Virtue not only ushers in a novel approach to borrowing in the DeFi space but also offers its users unique benefits and unprecedented security.
— Shimmer (@shimmernet) July 21, 2023
A New Breed of Stablecoin Platform
Virtue uses the concept of over-collateralized DeFi stablecoin platforms as a springboard to provide a borrowing solution that addresses the significant volatility of the crypto market. It does this while ensuring that its native stablecoin, vUSD, maintains a 1:1 peg with the US dollar. This results in a platform that offers reliable liquidity, a crucial aspect in the ever-changing landscape of cryptocurrency.
Zero Interest, Boundless Opportunities
Virtue’s defining feature is the absence of compounding interest, allowing borrowers to access cost-effective long-term loans without facing spiraling interest costs. This unique aspect of Virtue enhances its appeal, providing borrowers with an economical and transparent platform for securing loans.
The Power of Dual Tokens
Virtue operates with vUSD, a stablecoin for loan disbursements, and VIRTUE, a utility token that serves as an incentive reward. Users of Virtue can stake their VIRTUE tokens to earn fees generated by loan issuance and vUSD redemptions, all facilitated through the Stability Pool. This pool is a crucial mechanism that maintains the system’s stability and enables the protocol to automatically liquidate risky positions when the collateral ratio falls below 110%.
Reliability and Security at Its Core
Virtue’s roots are traced back to Liquity, a tried and tested decentralized stablecoin borrowing protocol. The platform offers a safer borrowing experience by allowing multi-collateral deposits, thereby extending a wider range of options for using assets to secure loans.
Virtue is also bolstered by rigorous security measures, given that it is a Liquity fork that has undergone extensive audits and tests. The platform is committed to undertaking an exhaustive audit of the forked code before deployment and adhering to robust policies to minimize risk.
Virtue’s launch on ShimmerEVM is on the horizon. This trailblazing stablecoin platform is primed to redefine financial stability and security in the crypto world.