Weed Journey Guide

2 min readAug 13, 2023

HAPPY WEEDENDS!

This guide is designed to help us explore the story of Adscendo through the lens of a weed journey.

🤔 What Adscendo is building?

Adscendo is building next-generation stablecoin and leverage.
aUSD is different from any existing stablecoin, it’s efficiently collateralized.

lstETH differs from any existing leverage, it’s split asset volatility.

🚬 Here is our motivation.

1. Limitations of Current Stablecoins: Capital Efficiency

However, existing stablecoins encounter capital efficiency issues. With a typical 150% Collateral Ratio, they need more than $150 worth of collateral for $100 of stablecoins, leaving $50 underutilized. This model represents a significant inefficiency.

Could we use the remaining $50 stETH as well?

2. Adscendo’s Innovative Solution: Efficiently Collateralized

Adscendo is pioneering a breakthrough in stablecoin design. It leverages the full $150 stETH to create 100 aUSD while employing the remaining $50 for lstETH.

To ensure that aUSD is backed by 100% collateral, all fluctuations in the price of stETH are absorbed by the $50 portion (lstETH), and $100 worth of stETH always supports 100 aUSD.

Here we get a leveraged stETH, lstETH means you can spend $50 to enjoy the price increase of $150 stETH.