General
Last updated
Last updated
How can I use Solido Protocol?
Solido enables users to borrow funds using multiple forms of yield-generating collateral, including $SUPRA and yield-amplified or auto-compounding yield tokens. Users can deposit their collateral into the Solido Protocol and receive $CASH tokens in return. The amount of $CASH they can borrow depends on the value of their collateral.
The main version of the Solido Protocol can support only non-censorable assets to preserve its safety and the core value propositions of $CASH and Solido.
What are the key benefits of the Solido Protocol?
Solido Protocol not only provides users with interest-free loans but also helps to reduce sell pressure on cryptocurrency assets by allowing users to borrow against them.
Additionally, the Solido Protocol is non-custodial, programmatic, and transparent, upholding the ideals of decentralized finance. Our fees are transparently paid upfront and visible from the user interface.
How can I earn money on Solido Protocol?
Users can earn money on Solido Protocol by providing liquidity to the Stability Vault. The Stability Vault helps repay the debts of liquidated with debts above the maximum. Stability Providers earn income via liquidation gains.
Solido Protocol may introduce a governance token in the future, which users may use to receive benefits. However, the platform will initially launch without the token.
What is $CASH?
$CASH is an over-collateralized debt token issued by Solido Protocol. $CASH can be minted by depositing collateral on the Solido Protocol. $CASH has a:
Hard price ceiling: $CASH Troves' maximum of 80% with $SUPRA as collateral creates a natural price ceiling of $1.20. When the $CASH exchange rate exceeds that level, borrowers can make an instant profit by borrowing the maximum amount against their collateral and selling $CASH on the market for more than $1.20.
Hard price floor: The ability to redeem $CASH for collateral creates a hard price floor, below which arbitrage opportunities become profitable.
We call these "hard peg mechanisms" since they are based on direct processes.
What is the Solido Protocol governance token?
$SOLD is Solido’s governance token, designed to decentralize control and reward early adopters. It will be distributed fairly and used as an instrument to incentivize adoption. Solido will initially launch on the mainnet without the token—stay tuned for more details.