Stable++:RGB++Layer First Stablecoin Protocol Analysis

In the DeFi ecosystem, stablecoins, DEX, lending, and oracles are the four fundamental components. For emerging public chains, having a reliable stablecoin protocol is particularly important, as it serves as a hub for various DeFi scenarios and directly influences the overall landscape of the ecosystem.

RGB++ Layer, as a second-layer network based on CKB, creates an ideal circulation environment for BTCFi ecosystem's stablecoins with its Turing-complete smart contract environment and native account abstraction infrastructure. Stable++, as the first stablecoin protocol in the RGB++ Layer ecosystem, adopts a CDP mechanism that allows users to collateralize BTC and CKB to mint RUSD stablecoin.

The main features of Stable++ include:

1. Users can over-collateralize BTC or CKB to borrow RUSD, and can also use RUSD to redeem the collateral.

2. Users can re-stake the borrowed RUSD back into Stable++ to earn governance tokens STB as rewards and gain the right to participate in asset liquidation.

3. Supports isomorphic binding and Leap non-bridge cross-chain functionality, enabling secure and efficient transfer of RUSD between different accounts.

4. Providing LSD functionality, NervosDAO users can stake CKB to obtain wstCKB, earning staking rewards while maintaining asset liquidity.

In the design of the clearing mechanism, Stable++ introduces a dual insurance mechanism of "Stability Pool" and "Redistribution" to improve clearing efficiency:

• The Stability Pool acts as a "standing army", with reserves of RUSD ready to liquidate bad positions at any time. During liquidation, RUSD in the insurance pool is burned, and LPs receive collateral as a reward.

• When the Stability Pool funds are insufficient, the Redistribution mechanism will be activated, distributing the debts and collateral of the liquidated positions proportionally to all existing positions.

This design can quickly process settlement events, effectively addressing the bad debt issues in traditional lending protocols, while allowing borrowing at a lower collateral rate, such as within 110%, improving capital utilization efficiency.

The unique issuance mechanism of Stable++ combined with CKB allows for the construction of an underdamped system within the RGB++ ecosystem. When the price of CKB rises, more users will pledge CKB to mint RUSD, indirectly reducing the inflation rate of CKB while increasing on-chain activity. This mechanism helps to form a healthy token economy system that maintains development without excessive leverage.

From a market perspective, the BTCFi ecosystem does need a large-scale decentralized stablecoin. Currently, the mainstream stablecoins USDT and USDC dominate the market, but the centralized risks cannot be ignored. In addition, the total market value of stablecoins is only a fraction of Bitcoin's market value, and there is still significant growth potential for stablecoins based on BTC.

With the growing prosperity of the RGB++ Layer ecosystem and the gradual improvement of projects like UTXOSwap, Stable++, and JoyID, the infrastructure of BTCFi on CKB is being gradually perfected. The stablecoin protocol based on Bitcoin will bring new imaginative space to the BTCFi ecosystem, and CKB is expected to become fertile ground for entrepreneurs, with a promising future.