CeDeFi CDP
Introduction to Avalon CeDeFi CDP
USDA is the flagship CDP(Collateralized Debt Position) product based on Avalon's CeDeFi lending platform. The goal of USDA is to provide the best stablecoin solution for DeFi community with extremely high capital efficiency and stability.
Why USDA is better?
USDA can be always converted to USDT anytime at 1:1 ratio and therefore never depeg. A major drawdown of CDP is the difficulty to maintain the peg of the CDP due to consistent selling pressure on CDP. Our USDA can be considered users' loan token from CeDeFi lending. Users can use USDA to claim USDT from our CeFi liquidity providers.
USDA has no supply cap. The supply of major CDPs is constrained on capacity due to the difficulty to maintain the peg.
USDA has better liquidation engine. With our CeDeFi lending infrastructure, collateral is liquidated in CEXs with high frequency trading engine to minimize trading slippages.
USDA is an omnichain stablecoin powered by LayerZero which enables users to use USDA across a variety DeFi ecosystems.
USDA will be supported in Avalon DeFi platform and get access to over 100k users. Isolated pool for USDA is set up to maximize capital efficiency and minimize risks.
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