LogoLogo
Home
  • 📖Introduction to Hedge
  • 👓Overview
  • How to use Hedge
    • ⚡Connecting a wallet
    • 🏦Creating a vault
    • 🤝Taking out a loan
    • 🔄Stability pool and liquidating a vault
    • 📨Earning Hedge rewards
    • 👩‍💻How to get a console log
  • Protocol Overview
    • 💲USH stablecoin
    • 🪙HDG protocol token
    • 🏦Vault Types
    • 🪙Redeeming against a vault
    • 💵Peg Stability Module
    • 🔁Liquidations & stability pool
    • 🩹Recovery Mode
    • 🔐Security
      • Oracle Address
    • ❔FAQ
    • 📊Tokenomics
    • 📙Glossary
    • 📃Whitepaper
  • Legal
    • Disclaimer
Powered by GitBook
On this page

Was this helpful?

  1. Protocol Overview

USH stablecoin

PreviousHow to get a console logNextHDG protocol token

Last updated 2 years ago

Was this helpful?

The ceiling price of USH is $1.10, as users can always deposit the equivalent of $110 of collateral to mint $100 worth of USH. If USH is trading above $1.10, a profit could be made by selling USH on the market.

To establish a floor price for USH, there are two different mechanisms. If a user has a loan and finds USH to be below $1, they can repay their loan at a lower price by buying more USH, in turn stabilizing the price of USH. Alternatively, they can their USH.

The USH token mint is .

Price ceiling

There is a hard price ceiling for USH at $1.1 which can be explained as follows:

  • Let's assume USH trades at 1.12 USDC and that you have 1000 USDC. We'll assume SOL price is at 50/USDC

  • With 1000 USDC you buy 20 SOL

  • With that you deposit into a Hedge vault and mint 909.09 USH (the max possible at 100% collateral ratio).

  • You sell the 909.09 USH on the market for 1018.18 USDC. (909.09 * 1.12)

  • You started with 1000 USDC and now have 1018.18 without ever needing to repay your vault. In the process you made 18.18 USDC profit

💲
redeem
9iLH8T7zoWhY7sBmj1WK9ENbWdS1nL8n9wAxaeRitTa6