Introducing Virtue: The Stablecoin Borrowing Platform With 0% Interest

Nakama is proud to introduce Virtue, the over-collateralized stablecoin borrowing platform on Shimmer with 0% interest rates. Virtue offers a variety of unique incentives and unparalleled benefits for its users.

Liquidity With Confidence

Over-collateralized DeFi stablecoin platforms offer a borrowing solution that mitigates the potential risks associated with the high volatility of the cryptocurrency market. Virtue’s native stablecoin vUSD provides liquidity while maintaining a 1:1 peg to the US Dollar.

The absence of compounding interest in Virtue allows borrowers to experience cost-efficient long-term loans without accruing exponentially increasing interest. Instead, Virtue ensures transparency and affordability, making it an attractive option for borrowers seeking economical solutions for taking a loan.

Liquity-Inspired Roots

Virtue is a modified fork of the battle-tested decentralized stablecoin borrowing protocol Liquity with an enhancement to the borrowing experience that introduces multi-collateral deposits. Instead of relying on a single asset, such as ETH, borrowers can deposit a variety of assets to secure their loan. This allows the platform to offer a broader range of options when using assets to access loans within the protocol.

One Platform, Two Tokens

Virtue operates with two tokens: vUSD as the stablecoin and VIRTUE as the utility token.

The stablecoin vUSD serves as a reliable medium for loan disbursements, while maintaining a 1:1 peg to the US Dollar.

VIRTUE is the platform’s utility token and serves as an incentivization reward for deploying vUSD into the Stability Pool. VIRTUE holders can stake their tokens to earn the fees generated by loan issuance and vUSD redemptions.

The Stability Pool acts as a mechanism to maintain the stability of the system and ensures the protocol can automatically liquidate risky positions when the collateral ratio falls below a 110% collateral ratio without the requirement for DEX liquidity and slippage of the assets value.

Key Benefits of Virtue

• 0% interest rate — No need to worry about compounding debt.
• Over-collateralization — Ensures stability of the vUSD. Protects against sudden market movements and mitigates the risk of vUSD depegging.
• Stability Pool — Provides an efficient method to liquidate collateral from risky debt positions (less than 110% collateral ratio) without the requirement for a DEX or slippage of the assets’ value. vUSD which is staked in the Stability Pool is rewarded with liquidation rewards and VIRTUE token emissions.
• Staking incentives — Stake VIRTUE and earn a portion of the platform’s fees as a reward for your participation.
• Decentralized — Experience the true power of decentralization reducing the risk of manipulation or shutdown by a central authority.
• Multi-collateral assets — Benefit from the advantages of diversification and decreased default risk.
• Feeless — Future plans to develop a wrapped version of vUSD for use upon Shimmer L1 with the aim to be the first stablecoin capable of transferring USD value without fees, securely and transparently across any network.

Security

Virtue is a Liquity fork which has been audited by Trail of Bits, Coinspect and been battle-tested for over 2 years which at its peak held over $4.5 billion in assets.

Security is at the very core of Virtue’s values which is why Virtue will undergo an extensive audit of our forked code prior to deployment, the team also has a set of rigorous policies to mitigate risk.

Team

Nakama is a long-term focused Web3 builder and venture fund. With a team of 20 developers and operations-driven employees, we are focused on developing a number of dApps to support the growth of Web3 applications with security at their core. Our mission is to create value for all stakeholders and help crypto move away from value extraction, towards value creation and sustainable token economies.

Launch

Virtue, the highly anticipated stablecoin platform, is set to launch on ShimmerEVM in the near future. Stay tuned for the official launch date announcement, documentation and tokenomics details and witness the dawn of a new era in financial stability and security.

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