a partially-collateralized Stablecoin in the Solana ecosystem
The UPFI token is a partially collateralized and partially algorithmically stabilized token soft-pegged to the U.S. Dollar. The protocol's goal is to keep the UPFI token price stable.
Two tokens are used as collateral: USDC and the UPFI share token (UPS). When a user mints UPFI by depositing USDC and UPS, the USDC is locked in the protocol, and the deposited UPS is burnt. When a user redeems UPFI for the underlying collateral, the user gets their deposited USDC back, and the protocol mints UPS. This dual-collateral design along with the redemption mechanism helps to keep the price of UPFI stable.
UPFI is the first stablecoin protocol which design principles to create a highly scalable, non-custodial, extremely stable, fractional-algorithmic, and pure on-chain finance on Solana. It supports next-generation payment networks on the blockchain.
We utilize a stablecoin, which is partially collateralized and algorithmically stabilized. It only requires a portion of the capital to mint, which is denominated in other stable assets. The remainder is denominated in a volatile asset as collateral. This generates both a natural demand and a value capture for the volatile asset.
UPFI aims to replace fixed-supply digital assets by bridging the gap between digital currencies and real-world applications with transaction costs of almost zero.