We're excited to announce the Ethereum Reserve Dollar (ERD), a fully decentralized stablecoin pegged to the US dollar, designed to become a pillar of the Ethereum ecosystem.
As the demand for fully decentralized stablecoins grows, ERD seeks to provide a solution that balances capital efficiency, price stability, and decentralization -- a challenge that has so far eluded the blockchain industry.
Previous stablecoin projects such as AMPL, ESD, BAC, and UST all collapsed. Even the largest stablecoins, USDT and USDC, respectively depegged in 2022 and USDC in 2023. ERD aims to address these issues by providing a robust, decentralized, and capital-efficient stablecoin alternative.
ERD is a decentralized lending protocol that allows users to borrow in USDE, a native stablecoin pegged to the USD, using select LSDs and blue-chip DeFi tokens as collateral. ERD maintains a minimum collateralization ratio of 110% and secures loans with a Stability Pool of USDE.
ERD offers several benefits, including full decentralization, low interest rates, capital efficiency, and direct redemptions. Our economic framework is modeled on the Liquity protocol, which was selected after extensive research into the existing stablecoin protocols and their relative strengths and weaknesses in relation to stability and liquidation methods. However, the model we've built is this -- and so much more.
With the launch of ERD, we're set to redefine the stablecoin landscape by delivering an efficient and decentralized lending solution.
Long live Ethereum Reserve Dollar. On Ethereum, By Ethereum, For Ethereum.