In the dynamic world of cryptocurrency, stablecoins became the top-level class of assets, rapidly gaining traction as a cornerstone of digital finance. Their appeal is undeniable, offering the price stability that mirrors traditional currencies, thus bridging the gap between the volatile crypto market and the predictable nature of fiat currencies. Yet, the potential of stablecoins extends far beyond their current use. We believe it’s time to unlock this untapped potential, transforming stablecoin industry with stUSD: decentralized stablecoin token, earning interest via Certo P2P lending protocol, secured with yield-generating real-world assets. This is not just an innovation; it’s a revolution in how we perceive and utilize stablecoins.
The Problem we solve: USDT and USDC
Today stablecoin ecosystem is predominantly controlled by centralized entities — USDT by Tether, USDC by Circle. These centralized issuers capitalize on the yield from real-world assets, such as treasury bills, without sharing these profits with the stablecoin holders. Also, the centralization poses a significant risk, creating potential single points of failure that contradict the decentralized ethos of the broader crypto community. The crypto community deserves better — users should have more control, more transparency, and the ability to step into the shoes of the stablecoin issuer by decentralizing the RWA collateralization process.
How Certo works
Certo is our bold response to these challenges. Crafted with the vision of decentralizing interest earnings on stablecoin named stUSD. Our innovative approach involves integrating yield-generating real-world assets as backing collateral, not only ensuring stability but also providing a continuous source of earnings.
Traditionally, everything receiving yield from a security becomes a security, meaning one can’t use existing dollar-pegged RWA-backed products provided by multiple market players (like tokenized treasury bills) in a decentralized manner or as a form of cryptocurrency. However, Certo solved this issue: the holders of stUSD do not receive yield from securities, but instead earn interest for the funds they lend through the protocol, while the lending and the interest paid by the borrowers is secured using tokenized US treasury bills.
Any user can bring USDT or USDC to the protocol — and receive stUSD as a receipt in return. On the other end, the protocol will lent this liquidity, in exchange for tokenized treasury bills, and pay interest to the stUSD holders by doing rebasement of stUSD. That’s simple and powerful!
The Safe Harbor in Decentralized Finance
At Certo, we stand out not by competing with existing decentralized stablecoins such as Ethena and DAI but by offering a distinctive risk model that sets us apart in the DeFi landscape. Our approach is fundamentally different, focusing on minimizing risk while maximizing interest stability for our users.
Our protocol is designed with safety at its core, accepting only tokenized ultra-short US Treasury bills as collateral. These financial instruments have demonstrated remarkable stability and low volatility, making them the perfect backbone for a low-risk protocol like Certo. With this approach, Certo entirely eliminates counterparty. The interest you earn is reliably backed by the appreciating value of the ultra-short US Treasury bills we hold as collateral. This intrinsic growth ensures that your returns are secure, consistent, and free from the unpredictability often associated with other forms of collateral.
Furthermore, our unique model allows us to maintain minimal over-collateralization requirements for borrowers — as low as just 2%. This unprecedented efficiency not only enhances the attractiveness of Certo as a borrowing platform but also reinforces our commitment to providing a safe, stable, and sustainable ecosystem for our users.
A Solid Foundation and the Way Forward
Certo is not just a concept; it’s a reality built on a robust foundation. Our protocol, a fork of the battle-tested AAVE v2 P2P lending platform, has undergone rigorous auditing to ensure security and reliability. We’re on the brink of launching our testnet, a precursor to the much-anticipated mainnet launch slated for later next month. But that’s not all. Throughout the year, we will roll out a decentralized, point-based distribution system that will pave the way for decentralized governance and other features of interacting with the protocol, inviting you to be an integral part of Certo’s future.
Join Us on This Revolutionary Journey
As we stand at the cusp of redefining what lending protocols and stablecoins can achieve, we invite you to join us in this exciting journey. Certo is more than a platform; it’s a movement towards decentralization, transparency, and fairness in the crypto space. Stay tuned for our upcoming launches and be part of a community that values the true essence of cryptocurrency. Together, let’s unlock the real power of stablecoins and pave the way for a new era of financial freedom and innovation.
To follow our news and updates subscribe to us on Medium, in Twitter and join our Discord channel.
