Novel STBL construction on the Algofi Lending V2.
STBL2 is the second iteration of the Algofi STBL coin. STBL2 price is fixed to $1 on the lending market contract via an oracle, and the entire supply is locked inside the market contract, only available to be borrowed. The interest rate is set via a price-feedback mechanism outlined in https://docs.algofi.org/stbl-stability-system/stbl-borrow-rate. The core principles of STBL remain the same as in V1, with important functional changes:
- 1.STBL2 can be supplied to the market contract to earn interest. This replaces the V1 staking contract and unlocks STBL2 as both yield bearing and collateral asset simultaneously.
- 2.Thanks to unlimited markets in V2, STBL2 can be collateralized with potentially infinite number of different assets
- 3.Lending V2 supports STBL2-USDC LP token on the Algofi Dex. This replaces the stability module of V1, allowing users to use their stable LP position as collateral and borrow against it. This unlocks relatively safer leveraged trading strategies for users and supports deeper liquidity and tighter peg in the STBL-USDC market.