PAYD is a stablecoin that is algorithmics...

New user(s) can issue more PAYD under the following conditions:

  • IRR is >= 115% (under normal mode)
  • IRR is >= 155% and where together with this opening of Cache brings the entire system’s Total Reserve Ratio (TRR) >= 155% (in recovery mode)

Existing user(s) can also top-up Staked ETH and issue PAYD when the IRR allows.

Profile of a user with $30,000 (10 ETH @ 3000 per ETH)

For example, a user locks up 10 ETH (@ ETH = $3000), with a total value of 10 ETH at $30,000 and issues $26,086.95 of PAYD (consisting of 25,758.17 PAYD + 128.79 PAYD issuance Fee and 200 PAYD Liquidation Deposit). The position of 10 ETH valued at $30,000 and issued PAYD debt of $26,086.95 is kept in the Cache. The Cache also constantly monitors the value of the ETH such that the Individual Reserve Ratio (IRR) to make sure that the total value of the locked ETH is >= 115% of the issued PAYD debt. (i.e. IRR = $30,000 / 26,086.95 = 1.15 or 115%).

Stake ETH, GET PAYD based on Value of ETH being 30,000
Stake ETH, GET PAYD based on Value of ETH being 30,000

As the value of ETH fluctuates, Caches with an Individual Reserve Ratio (IRR) position that falls below IRR of 115% is liquidated. This encourages the Cache holders to be prudent with issuing PAYD to avoid being liquidated while keeping PAYD well backed by ETH collateral.

PAYD tokens in wallet can use for staking in Rewards Pool and is freely exchangeable and can be used elsewhere. (Read more here)

The tokens are freely exchangeable - anyone with an Ethereum address can send or receive PAYD tokens, whether they have an open Cache or not. The tokens are burnt upon repayment of a Cache's PAYD issued debt.

Arbitrage Opportunities

Users who issued PAYD can benefit from the upwards price pressure of the PAYD. PAYD is in demand as PAYD owners can Stake PAYD into rewards pool to earn rewards without opening a Cache and without being subjected to any liquidation risks. PAYD users who obtained PAYD through issuance can then arbitrage the gains from the appreciation of the PAYD by Swapping PAYD for ETH (minus fees), with the system, or Swap PAYD for ETH on an external platform such as Uniswap.

The PAYD stablecoin tokens are economically geared towards maintaining value of 1 PAYD = $1 USD, due to the following properties:

  • The system is designed to always be over-collateralized - the dollar value of the locked Ether exceeds the dollar value of the issued stablecoins.
  • The stablecoins are fully redeemable - users can always swap $x worth of PAYD for $x worth of ETH (minus fees 0.5% and up), directly with the system. (Read more about SWAP)
  • The system algorithmically controls the generation of PAYD through a variable issuance fee (0.5% to 5%). (Read more about fees)

Returns can be obtained from Staking PAYD into Rewards Pool for: -

  • Liquidation Rewards
  • ETH2 Staking Rewards
  • ETH2 Mining Rewards is complying with regulatory requirements and is in the midst of a licence application with the Monetary Authority of Singapore. Please note that during this period, our documentation may change and be refined over time.