As mentioned in the previous article, the PolyQuity protocol will support multiple crypto-assets as collateral. We have compiled some frequently asked questions from the community.
PUSD.TOKEN
What is PUSD.TOKEN?
PUSD.Token is minted by staking collaterals. PUSD.Token is the USD-pegged stablecoin used to pay out loans on the PolyQuity protocol. At any time it can be redeemed against the underlying collateral at face value.
For example:
User A uses ETH as collateral, and the name of the minted PUSD.Token is PUSD.ETH.
User B uses USDC as collateral, and the name of the minted PUSD.Token is PUSD.USDC.
What is the difference between PUSD and PUSD.TOKEN?
PUSD is minted by users staking Matic. When the “multi-asset” version goes live, PUSD will also be a type of PUSD.TOKEN. Since we cannot rename PUSD, this name will continue to be used. But you should understand that PUSD is PUSD.Matic.
Can I continue using PUSD?
Of course, PUSD is minted by staking Matic. You can still stake PUSD in the SP to earn PYQ.
Why are there different PUSD.TOKEN?
Due to the unique mechanism design, each Trove system is independent, so different PUSD.TOKEN will be minted by staking different collateral.
What is the difference between each type of PUSD.TOKEN?
- The collateral is different.
2. Each PUSD.TOKEN is a new ERC20 token contract.
Why is the value of PUSD.Tokens the same?
Although different collaterals troves independently, they are all minted under the PolyQuity protocol mechanism. Regardless of the value of the collateral or how it fluctuates, the value of any PUSD.Token is always the same.
PolyQuity Dollar (PYD)
What is PYD？
PYD is a new stablecoin (ERC20 token contract) created by the PolyQuity team after the “multi-collateral” version was launched. It maintains a 1:1 exchange ratio with any PUSD.TOKEN. It will be mainly used outside of the protocol. Since each PUSD.TOKEN is independent, we need a unified stablecoin for ease of use.
What is the use case for PYD?
Like other stablecoins, you can use PYD for exchange, transfer, and mining.
Other Question
What will happen when the “multi-asset” version goes live?
More PYD/PUSD.TOKEN Minted
It is foreseeable that when the system supports “multiple collateral”, it will attract more users to stake other popular collaterals to mint more stablecoins.
Protocol Revenue
In accordance with the protocol mechanism, as more stablecoins are minted, the protocol will capture more revenue.
PYQ Pool Revenues
New protocol revenue will continue to be distributed to PYQ stakers.
Links
Website：https://polyquity.org/
Gitbook: https://docs.polyquity.org/
Twitter：https://twitter.com/polyquity_org
Telegram: https://t.me/polyquityorg
Email：contact@polyquity.org
