Orby Network USC StablecoinPrice

(USC)

Orby Network is a decentralized lending protocol built on the Cronos Chain. It enables users to mint USC, an overcollateralized stablecoin that is soft-pegged to the US Dollar. Unlike centralized alternatives backed by bank deposits, USC is decentralized, censorship-resistant, and backed by on-chain crypto assets. It serves as a reliable unit of account and store of value within the Cronos ecosystem, offering unique features like interest-free borrowing.

Stability is maintained through four core mechanisms. First, Redemptions allow users to exchange 1 USC for exactly $1.00 worth of collateral. Second, Arbitrage encourages traders to buy USC when it is below $1.00 to profit from redemptions. Third, a Price Ceiling naturally forms because the collateral ratio makes it profitable to mint and sell USC if its price rises too high. Finally, a Floating Base Rate adjusts borrowing and redemption fees based on market demand to regulate the supply effectively.

A Shuttle is Orby’s specific term for a Collateralized Debt Position (CDP) or vault. To mint USC, users must open a Shuttle and deposit supported crypto assets. Currently, the protocol supports assets such as Liquid Staked Ether, Wrapped Bitcoin, and the Cronos native token, including its liquid staked versions. Each collateral type has its own dedicated Shuttle with specific parameters to ensure the security and stability of the minted USC.

Orby is distinguished by its interest-free model; borrowers do not pay an ongoing percentage to keep their loans open. Instead, a one-off borrowing fee is charged only at the moment of minting. There is no fee for repayment. However, users must adhere to a Minimum Collateral Ratio, usually 135%. If the collateral's value relative to the debt falls below this threshold, the position may be liquidated to protect the protocol's solvency.

There are several ways to earn within the ecosystem. Users can deposit USC into the Stability Pool to help secure the protocol, receiving discounted liquidated collateral and protocol rewards in return. Staking the native ORB or escrowed esORB tokens allows holders to earn a share of protocol revenue. Furthermore, USC can be utilized in various decentralized exchanges and DeFi platforms on the Cronos Chain for yield farming. Orby also features a Points System that tracks user activity for potential future incentives.

Recovery Mode is a safety feature activated if the Total Collateral Ratio of the entire protocol falls below a critical threshold, usually 150%. During this period, the protocol prioritizes regaining stability by implementing stricter liquidation rules. To encourage users to strengthen the system, borrowing fees are reduced to 0%, incentivizing the addition of collateral. This ensures the protocol remains solvent and that USC remains fully backed even during periods of high market volatility.