CSP DAO Project Review: UPFI

UPFI is the first stablecoin protocol designed to create a highly scalable, non-custodial, incredibly stable, fractional-algorithmic, and pure on-chain finance on Solana. It supports next-generation payment networks on the blockchain.

It’s a stablecoin, which is partially collateralized and algorithmically stabilized. It only requires a portion of the capital to mint, which is denominated in other stable assets. The remainder is denominated in a volatile asset as collateral. This generates both a natural demand and a value capture for the volatile asset.

UPFI aims to replace fixed-supply digital assets by bridging the gap between digital currencies and real-world applications with transaction costs of almost zero.

UPFI PROTOCOL

Two tokens are used as collateral: USDC and the UPFI share token (UPS). When a user mints UPFI by depositing USDC and UPS, the USDC is locked in the protocol, and the deposited UPS is burnt. When a user redeems UPFI for the underlying collateral, they get their deposited USDC back, and the protocol mints UPS. This dual-collateral design, along with the redemption mechanism, helps to keep the price of UPFI stable.

FEATURES

Mint & Redeem: Mint/redeem stablecoin with partial collateral; also use TCR and ECR for protocol.
Governance: Created to give holders the chance to have a voice on the platform while also being rewarded for holding UPS tokens for an extended period.
Farm: Users can farm UPS by providing liquidity and depositing their LP tokens on UPFI Network.

TOKEN UTILITY

The xUP token is the governance token of the UPFI Network in the Solana blockchain. It is generated by locking UPS tokens on the Governance section of the platform. The xUP token serves as our platform’s governance token about fee distribution mechanism, integration, unique functions, events, investment vault, development and more.

It was created to give holders the chance to have a voice on the platform while also being rewarded for holding UPS tokens for an extended period.