Shido Native Stablecoin is a multi-collateral backed stablecoin. A decentralized and over-collaterialized stable currency, supported by multi-chain assets such as BTC, ETH, ATOM and more.
Shido Stablecoin is the core of Shido Ecosystem and provide a default routing asset powering Shido Blockchain. A decentralized and censorship-resistant stablecoin is essential to fuel transactions and provide a medium of exchange.
Shido Stablecoin allows stable currency to be minted using a basket of collateral multi-chain reserve assets similar to how traditional reserve systems are backed by valuable tangible assets.
Shido is building dApps that supports and operate the stablecoin, which includes protocols under Shido DeFi Platform. Among these protocols are Liquidity, Liquid Staking and CDP Protocols. Shido DeFi powers the liquidations that helps support the operation of Shido Stablecoin. Liquid Staking Protocol supports Shido Stablecoin by unlocking liquidity on staked SHIDO. Creating a new SHIDO derivative to be used as collateral to mint. This allows users to multiply their exposure to SHIDO while earning staking yield at the same time.
The native token in Shido Ecosystem for fee, governance and utility token, is SHIDO. SHIDO provides a means to make transactions on the network, influence in all governance decisions, as a collateral asset for Shido Stablecoin and an ownership stake in Shido on-chain Treasury.
Workings of Shido Stablecoin
Shido Stablecoin Protocol on Shido DeFi uses a multi-collateral and multi-chain backing mechanism to mint stablecoin that is soft-pegged to the US Dollar. The protocol mints the new stable currency out of a basket of reserve assets. Enabling users to perform transactions, trade and facilitate services using Shido Stablecoin without the price volatility. At the same time, if desired, retaining ownership of the reserve assets, derivatives or assets bridged from other networks.
Shido is using the system of a CDP Protocol, Collateralized Debt Positions (CDPs). A complex protocol with supply and demand balancing, risk management mechanisms and different sets of incentives. Together with these features in the Protocol, Shido Stablecoin is soft-pegged to the value of a US Dollar.
The decentralized nature of Shido Stablecoin offering an on-chain liquidator which removes any third party centralized risk. Shido also guarantees Oracle price feeds make it into every block. This allows Shido Stablecoin to manage potential risks in a more efficient manner.
All collaterialized debt positions holds the collateral assets deposited by the users who opened the position to create Shido Stablecoin, this together with the stablecoin debt position. The deposited collateral assets are locked and cannot be claimed until the Shido Stablecoin debt is paid in return.
Active debt positions are always over-collaterialized with the collateral value of the assets far exceeding the value of the actual debt. Opening a debt position also involves interest that goes to the protocol as well as liquidity providers.
Partners are contributing to Shido by providing the markets best risk parameters for our protocols. Including real time collateralization ratios. All parameters can be adjusted and the aim is always to be as low as possible, which allows our users to generate the most value possible from their collaterialized assets.
To borrow Shido Stablecoin can be acquired by over-collateralizing the reserve assets. In practice this means for example, you could collateralize $1000 USD worth of assets and receive $500 USD worth of Shido Stablecoin. This example would be two times collateral ratio and how the CDP Protocol hedges against potential price fluctuations.