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The ERD Mission
We aim to provide a stable, fully decentralized stablecoin - USDE, which can be borrowed by users through our platform using Liquid Staking Derivatives (LSDs) and blue-chip DeFi tokens as collateral. Our ultimate objective is to offer our users stable and secure investment options built on the resilience of blue-chip DeFi tokens and state-of-the-art technology.
To achieve this vision, we plan a two-staged development approach for the protocol:
- Version 1: In this initial version, we will allow users to borrow the USDE stablecoin using ETH and LSDs tokens as collateral.
- Version 2: As we progress to the second version, we will expand the collateral options by introducing blue-chip DeFi ERC20 tokens for borrowing the USDE stablecoin.
As we release these versions, we will also be working to expand USDE inclusion into the web2 economy, prioritizing the development of stablecoin:fiat on/offramp networks in high inflation economies.
The core benefits of ERD include:
Diversified Risk: The inclusion of blue-chip DeFi tokens as collateral will enable the protocol to diversify away systemic risk and establish a stablecoin semi-indexable to the Ethereum ecosystem.
Protocol Stability: We leverage efficient clearing and robust anchoring mechanisms to ensure our protocol maintains stability even in volatile market conditions.
Liquidity Management: We offer a providing comprehensive solution for Ethereum-based assets, enhancing user control over liquidity management.
We make it easy for ETH asset holders of all scales to participate in the Ethereum staking ecosystem, ensuring minimal barriers to entry. Our goal is to become the top reserve asset in the Ethereum ecosystem.
The ERD protocol provides low-interest loans and is more capital-efficient than other lending systems (meaning less collateral is required for the same loan). You can use the protocol to lock your collateral as collateral to borrow USDE, which can be repaid in the future instead of selling your tokens for liquidity.
For example, a borrower who anticipates a rise in the price of Ether or its derivatives in the future or wants to hold onto their collateral long-term can leverage their collateral up to 11 times through the protocol, increasing their exposure to price changes. This is possible because USDE can be borrowed against a particular ERC20 token, such as stETH, and then sold on the open market to buy more stETH - and so on. Additionally, you can also enjoy the APR brought by stETH as a rebasing token, as are other collateral.
Note: This is not advice on how to use ERD. Leverage can have risks and should only be considered by experienced individuals.