FAQs
What is Secured Finance?
Secured Finance is a decentralized protocol offering both fixed-income lending and a stablecoin (USDFC), backed by Filecoin as collateral. It aims to provide users with transparent, secure borrowing and liquidity management.
What is USDFC?
USDFC is the protocolโs USD-pegged stablecoin, minted by collateralizing Filecoin. It maintains a 1:1 peg to USD through mechanisms like redemptions and Stability Pool operations.
How can I use USDFC?
After minting USDFC, you can:
Provide liquidity to the Stability Pool.
Supply liquidity to decentralized exchanges (DEXs).
Lend it out via Secured Financeโs fixed-income markets.
What is the minimum collateral ratio?
The protocol enforces a minimum collateral ratio (MCR) of 110% during normal operations, which increases to 150% during Recovery Mode to ensure overall system stability.
What happens if USDFC loses its peg to the USD?
If USDFC trades below 1.0 USD, users can redeem USDFC for FIL, which reduces the circulating supply and pushes the price back toward the peg. When USDFC trades above 1.0 USD, minting becomes more attractive, increasing the supply and stabilizing the price.
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