- Along with 0 percent interest and over-collateralization, Virtue’s Stability Pool provides an additional safety net.
- The Virtue platform runs using two tokens: the vUSD stablecoin and the VIRTUE utility token.
Shimmer, the Layer 1 staging network of the IOTA ecosystem has witnessed strong growth and adoption ever since its launch last year in September 2022. Virtue, a new stablecoin borrowing platform offering 0 percent interest rates has recently launched on the Shimmer blockchain network. The official announcement comes from Virtue’s parent firm Nakama.
Congratulations Nakama for launching the Virtue stablecoin platform on #Shimmer!@virtue_money https://t.co/2R2uqOVRvX
— Shimmer (@shimmernet) July 21, 2023
This over-collateralized stablecoin borrowing platform offers unique incentives along with unparalleled benefits to its users.
DeFi stablecoin platforms that are over-collateralized offer a safe way to borrow money and avoid risks in the volatile cryptocurrency market. Virtue’s stablecoin, vUSD, keeps a fixed value equal to one US Dollar, making it reliable for transactions.
Virtue doesn’t charge compounding interest, which means borrowers can take long-term loans without worrying about rapidly increasing interest costs. Instead, Virtue provides transparent and affordable loan options, making it a great choice for people looking for economical borrowing solutions.
Virtue is a modified fork of the decentralized stablecoin borrowing protocol Liquidity. However, it brings further enhancement to the borrowing experience by introducing multi-collateral deposits. Rather than relying on a single asset, borrowers can deposit a variety of assets on Virtue to secure a loan.
Virtue has two types of tokens: vUSD, which is a stablecoin, and VIRTUE, which is a utility token. The stablecoin vUSD is used as a trustworthy medium for providing loans and always stays at the same value as one US Dollar.
On the other hand, VIRTUE is the platform’s utility token, and it rewards people who contribute vUSD to the Stability Pool. By staking their VIRTUE tokens, holders can earn fees generated from loan issuance and vUSD redemptions.
Key Benefits of Virtue
In addition to 0 percent interest rates and over-collateralization, the Virtue platform offers other benefits such as Stability Pool. The Stability Pool is like a safety net that keeps the system stable. It automatically sells risky assets when their value falls too low compared to their collateral (110% ratio). This happens without needing to use DEX liquidity and avoid sudden price changes.
When users stake vUSD in the Stability Pool, they get rewards for helping with these liquidations, and they also receive VIRTUE tokens. Additionally, users can also stake the VIRTUE utility token and earn a portion of the platform’s fees in the form of rewards.
Furthermore, the Virtue platform puts a strong focus on safety. Virtue is based on Liquity, but it has undergone audits by Trail of Bits and Coinspect, and it has been tested extensively for more than 2 years, with assets totaling over $4.5 billion at its highest point.
Security is of utmost importance to Virtue, and that’s why they will conduct a thorough audit of their code before launching. The team also follows strict policies to reduce any risks involved.
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