RGB++Layer's First Stablecoin Protocol Stable++ Analysis

Stable++ is the first stablecoin protocol within the RGB++Layer ecosystem, using a CDP mechanism to generate the RUSD stablecoin backed by BTC and CKB as collateral. This protocol combines the Stability Pool insurance pool and bad debt redistribution mechanism to provide BTC and CKB holders with a reliable stablecoin minting scenario.

The main features of Stable++

1. Users can borrow RUSD stablecoin by over-collateralizing BTC or CKB, and they can also redeem collateral with RUSD.

2. Users can re-stake the borrowed RUSD back to Stable++, earning governance token STB as a reward, while also gaining the right to participate in asset liquidation.

3. Users can stake the governance token STB back to Stable++, and earn a share of the fees from collateral and redemption based on the staking weight.

4. RUSD supports isomorphic binding and Leap functionality, enabling cross-chain transfer.

5. NervosDAO users can stake CKB on Stable++ to exchange for wstCKB.

Clearing Mechanism Design

Stable++ adopts a dual insurance mechanism of "Stability Pool" and "Redistribution" to improve liquidation efficiency:

1. The Stability Pool acts as a "standing army", ready to liquidate bad positions at any time. When a liquidation event occurs, the protocol first liquidates the bad positions through the insurance pool and distributes the collateral to the LPs of the insurance pool as a reward.

2. If the Stability Pool funds are insufficient, the Redistribution mechanism will be activated to proportionally reallocate the debts and collateral of the positions being liquidated among all positions.

This dual-pronged efficient settlement method can effectively address the bad debt problem in traditional lending protocols, while allowing borrowing at a lower collateral ratio of (, such as within 110% ), thereby increasing capital utilization.

Build Underdamped System

The combination of the issuance mechanism of Stable++ and CKB helps to build a healthy token economic system:

1. When the price of CKB rises, more people will use CKB to collateralize and mint RUSD, locking in more CKB.

2. The minting of RUSD increases the activity of on-chain DeFi systems.

3. Indirectly reduce the CKB inflation rate, increase on-chain activity, and improve miner earnings.

This mechanism forms a "under-damped system", which can alleviate the drastic fluctuations in coin prices and maintain the healthy development of the system.

The Necessity from a Market Perspective

1. The crypto market needs larger-scale decentralized stablecoins to cope with the centralization risks of USDT and USDC.

2. Currently, the market value of stablecoins is only a small portion of the total market value of Bitcoin, and stablecoins based on BTC still have significant growth potential.

3. With the RGB++ Layer ecosystem flourishing and the gradual improvement of related projects, the stablecoin protocol based on Bitcoin will bring new imaginative space to the BTCFi ecosystem.