Launching USD2, a decentralized stablecoin on Kadena
Today, September 12th 2022, the Lago DAO voted to pass its first proposal, putting in motion a series of events resulting in the birth of a new decentralized digital currency: USD2.
USD2 is implemented on the Kadena blockchain via smart contracts, which are controlled by the Lago DAO. This combination of a secure, Proof-of-work, network and decentralized governance, make USD2 resilient and transparent.
USD2 today, in its first iteration, is collateralized 1:1 by kwUSDC, which is a Kadena Wrapped USDC token. kwUSDC tokens can be obtained by wrapping USDC from Ethereum via the Lago Bridge.
In the near future, the Lago DAO is expected to direct a transition to USD2 V2, which will implement a system to involve the LAGO governance token in the minting and redemption operations. The goal is to maintain a Total Collateral Ratio at or above 100%, while enhancing capital efficiency and enabling decentralized governance.
Lago DAO’s vision is to enable digital currency to move without interference, with fast and secure settlements being highly beneficial to individuals and businesses alike.
USD2 minting and redemption operations are permissionless and available at this website: usd2.lago.finance. The token address on Kadena mainnet is “lago.USD2”.