Virtue, a stablecoin borrowing platform, has recently launched on the Shimmer blockchain network. This platform offers 0 percent interest rates and over-collateralization, making it a safe and reliable option for borrowers in the volatile cryptocurrency market. The Virtue platform operates using two tokens: the vUSD stablecoin and the VIRTUE utility token.
The Shimmer network, which is part of the IOTA ecosystem, has experienced significant growth and adoption since its launch in September 2022. Nakama, the parent company of Virtue, announced the official launch of the stablecoin platform on Shimmer.
Virtue’s over-collateralized stablecoin borrowing platform provides unique incentives and benefits to its users. The vUSD stablecoin maintains a fixed value of one US Dollar, ensuring stability for transactions. Unlike traditional lending platforms, Virtue does not charge compounding interest, allowing borrowers to take long-term loans without the worry of increasing interest costs.
Virtue is an enhanced version of the Liquidity decentralized stablecoin borrowing protocol. It introduces multi-collateral deposits, allowing borrowers to secure loans by depositing a variety of assets. This diversification reduces risk and provides greater flexibility for users.
The platform has two types of tokens: vUSD, the stablecoin used for loans, and VIRTUE, the utility token that rewards users for contributing to the Stability Pool. By staking their VIRTUE tokens, holders can earn fees generated from loan issuance and vUSD redemptions.
One of the key benefits of Virtue is its Stability Pool, which acts as a safety net for the system. It automatically sells risky assets when their value falls below the collateral ratio, ensuring the stability of the platform. Users who stake vUSD in the Stability Pool receive rewards and VIRTUE tokens. Additionally, staking the VIRTUE utility token allows users to earn a portion of the platform’s fees.
Safety is a top priority for Virtue, and the platform has undergone extensive testing and audits. It has been tested for over two years and has had assets totaling over $4.5 billion at its highest point. The team follows strict policies to minimize risks, and they conduct thorough code audits before launching.
In conclusion, Virtue’s stablecoin borrowing platform offers a safe and reliable borrowing solution with its unique features such as over-collateralization and the Stability Pool. With its focus on safety and transparency, Virtue aims to provide a trustworthy platform for users in the cryptocurrency market.