The Money Protocol Su Protocol, designed for the SuiNetwork, redefines stablecoins by decomposing the Sui coin into two innovative asset classes: Beta Coins and Leveraged Sui.
The Stablecoin Trilemma
Stablecoins are pivotal in DeFi, yet current designs compromise on scalability, decentralization, or stability. Su Protocol emerges as a solution to this trilemma, offering a uique approach to tackle these challenges head-on.
The Solution
Su Protocol introduces Leveraged Sui (xSui) & Beta Coins, fundamentally reshaping stablecoin dynamics. By transferring volatility to a new asset class, Su Protocol ensures stability without over-reliance on collateralization.
Two-Way Relationship fSui, the floating stablecoin, tracks a fraction of Sui's price movement, offering stability with a hedge against USD devaluation. Sui Dollar, the stablecoin, maintains a fixed value, providing users with stable purchasing power.
Liquid Staking
Su Protocol integrates liquid staking, allowing Sui collateral to be staked on validators, yielding attractive returns for Sui Dollar holders. This incentivizes participation and enhances the protocol's robustness.
Capital Efficiency
Unlike traditional stablecoin models, Su Protocol prioritizes capital efficiency, ensuring that users don't need to over-collateralize their positions. This fosters a more accessible and sustainable ecosystem.
Risk Mitigation: No Liquidations
One of Su Protocol's key strengths lies in its absence of liquidations. By design, users are shielded from the risks associated with liquidation events, offering peace of mind and stability
Su Protocol represents a paradigm shift in stablecoin design. DeFi on Sui enters an era of stability, scalability, and decentralization. By leveraging innovative asset classes and novel mechanisms, Su Protocol paves the way for a resilient and inclusive financial landscape.