🗝️Key Features
Secured Finance's stablecoin protocol introduces a variety of innovative features that enable users to efficiently mint, manage and utilise USDFC, our decentralized, Filecoin-backed stablecoin. Below are the key features:
Mint USDFC by locking Filecoin (FIL) as collateral with a minimum collateralization ratio of 110%. This ensures capital efficiency while allowing users to extract liquidity from their FIL holdings.
The Stability Pool secures the protocol by covering liquidations. Users who deposit USDFC into the pool can receive discounted FIL from liquidated positions.
USDFC maintains a 1:1 peg to the USD through a redemption mechanism, allowing users to exchange USDFC for FIL at its peg value, stabilizing its price.
If the system-wide collateral ratio drops below 150%, the protocol enters Recovery Mode, prioritizing liquidations and restricting new borrowing to restore stability.
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