Unipay
  • OVERVIEW
  • 💫Unipay Overview
    • Solution USDu
  • Solution Overview
    • USDu Overview
      • Delta-Neutral Stability
      • Off Exchange Settlement
    • Risks
      • Program/Smart Contract Risk
      • Funding Rate Risk
      • Liquidation Risk
      • Custodial Risk
  • Solution Design
    • Minting USDu
      • Mint Validity Checks
    • Stake USDu
      • User Security Measures
  • Backing Custody & Security
    • Overview
      • Off-Exchange Settlement in detail
  • Resources
    • Brand Kit
    • General Risk Disclosures
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  1. Unipay Overview

Solution USDu

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Last updated 5 months ago

Unipay introduces USDu a yield-bearing stablecoin designed to seamlessly integrate blockchain-native financial systems with real-world utility. Built with a focus on scalability, efficiency, and accessibility, USDu redefines stablecoin functionality by combining advanced collateral management with robust payment integration.

Unipay's USDu differs fundamentally from traditional fiat-backed stablecoins like USDC or USDT. USDu is a yield-bearing synthetic dollar, secured by crypto assets and balanced through delta-neutral short futures positions.

As a result, the risks associated with interacting with USDu are distinct from those of fiat-backed stablecoins.

For more details, please refer to our comprehensive section.

Key Features of USDu

  1. Yield Generation USDu leverages staked assets, perpetual funding spreads, and hedging mechanisms to generate consistent yields for users. Unlike traditional overcollateralized stablecoins, USDu optimizes capital efficiency while maintaining price stability.

  2. Scalability Through Multi-Collateral Support USDu is backed by a delta-neutral strategy, supporting assets like Solana (SOL), Ethereum (ETH), Bitcoin(BTC) and liquid staking tokens (LSTs). By dynamically adjusting collateral allocation and leveraging liquid markets, USDu ensures scalability across multi-chain ecosystems.

  3. Seamless Integration with Payments Beyond its stablecoin functionality, USDu powers the Unipay Card and settlement services, enabling users to seamlessly bridge blockchain credit to traditional payment systems such as Visa, MasterCard, and PayPal.

  4. Stability and Security Through delta-neutral hedging, USDu minimizes volatility risks associated with its underlying assets. This ensures that USDu maintains a stable peg, providing users with confidence and reliability for transactions and savings.

How USDu Works

  1. Collateral Backing Users mint USDu by staking assets like SOL or ETH/BTC. The protocol utilizes delta-neutral positions in perpetual futures markets to hedge against price fluctuations, ensuring the stablecoin remains fully backed and scalable.

  2. Yield Distribution Yields generated from staking rewards and funding spreads are distributed to USDu holders, providing a consistent return on holdings.

  3. Real-World Utility Users can spend USDu directly using the Unipay Card or settle cross-border payments through our settlement services. This bridges blockchain-native assets with real-world commerce.

Advantages of USDu

  • Optimized for Capital Efficiency: Minimal collateral lockup compared to traditional stablecoins, enabling greater liquidity utilization.

  • Multi-Chain Scalability: Supports collateral from multiple ecosystems, including Solana and Ethereum.

  • Integrated Payment Solutions: Enhances usability by bridging DeFi with traditional financial systems.

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Risks