Pareto has introduced the USP synthetic dollar to connect institutional investors with DeFi opportunities. This synthetic dollar is backed 1:1 by stablecoins including USDC and USDT, ensuring participants can generate yields by lending to vetted borrowers.
To maintain its dollar peg, USP employs a native backing process, establishing a stability reserve to counter borrower defaults. The goal is to enhance transparency and efficiency absent in traditional private credit markets, providing a robust solution for institutional investors.
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