What Is USDP StableCoin (USDP)?

USDP describes itself as an unbiased and decentralized stablecoin whose value is soft-pegged to the traditional currency of USD. A soft peg is a method to keep the value of a currency within a specified range against a reserve currency by utilizing an exchange rate policy. According to its whitepaper, USDP is fully collateralized by third-party crypto assets stored in the Unit Protocol. The Unit Protocol allows users to borrow liquidity in the form of USDP stablecoin by using a wide range of tokens as collateral. The Unit Protocol system generates all circulating USDP, allowing users to mint the stablecoin. In exchange for borrowing the USDP stable, the user can lock any amount of the asset that the protocol accepts as collateral. As a result, the user seeks to obtain some liquidity to use that as a source of additional income without trading their asset.

Further, debt repayment and collateral withdrawal are possible at any time after a debt position is opened. When loans are repaid, the USDP is destroyed. USDP strives to maintain a value of USD 1.00. One can easily redeem or exchange USDP stables. Moreover, in case of high volatility in the market, USDP allows users to store its value and functions as a peer-to-peer transactional medium for merchants. As a result, USDP offers a great deal of flexibility and utility.

Currently, the USDP token is running on Ethereum, Binance Smart Chain, and Fantom, a fast, open-source smart contract platform for digital assets and Dapps. Furthermore, the USDP stablecoin is applicable wherever digital currency is accepted. It can be stored in cryptocurrency wallets or used to pay for goods and services on DeFi platforms. Because USDP is a stable medium of exchange, users can save, borrow, lend, and cover business expenses. Users can also purchase other tokens and exchange their USDP for traditional currency without having to pay any middlemen. In addition, there are various benefits attached with USDP token such as:

• Transparent and secure

• Provides fast transfers with no chargebacks

• Completely private

• Provides direct custody of funds upon receipt

• Less volatile against fluctuations on the market