USDT Pool
Your Gateway to Seamless BLC Exchange and Passive Income
The USDT Pool within the Balance Protocol offers a user-friendly and versatile solution for those seeking to exchange between USDT and BLC, the native stablecoin of the ecosystem.
The USDT Pool is more than just a convenient exchange tool. It offers a compelling way to:
Maximize the potential of your USDT holdings: Generate passive income through vBLC rewards while maintaining easy access to your USDT.
Contribute to BLC price stability: Play an active role in ensuring the stability of the Balance Protocol's core asset.
Experience the benefits of DeFi: Become part of the thriving 42DAO community and explore the vast possibilities of Decentralized Finance.
Key Features of the USDT Pool:
Effortless BLC Exchange: This official tool facilitates convenient swapping between USDT and BLC at a 1:1 ratio under specific conditions. Leverage the USDT Pool to seamlessly convert your holdings based on your investment strategies.
Maintaining BLC Price Stability: The USDT Pool acts as a crucial mechanism for maintaining the BLC price peg to the US dollar. Users can actively participate in price stabilization through the pool based on market fluctuations.
BLC Above $1.01 USD: When BLC exceeds its peg, users can exchange excess BLC for USDT at a 1:1 ratio, increasing BLC supply and driving the price back down.
BLC Below $0.99 USD: Conversely, when BLC falls below its peg, users can exchange USDT for BLC at a 1:1 ratio, reducing BLC supply and pushing the price back towards $1.
Introducing vBLC
The USDT Pool introduces a unique concept called virtual BLC (vBLC). When you exchange BLC for USDT using USDT, you'll receive the minted and equivalent amount of tradable BLC alongside vBLC. Here's what you need to know about vBLC:
vBLC is not generated from collateralized minting: Unlike BLC minted through assets like BTC, ETH, or BCH, vBLC is exclusive to the USDT Pool.
vBLC rewards passive income: As a vBLC holder, you'll share a portion of the benefits generated by the pool, including:
A share of exchange fees collected from USDT-BLC swaps.
A portion of FTD tokens, the governance tokens of the Balance Protocol, distributed based on your vBLC holdings (gradually decreasing as exchange fees reach a sustainable level).
vBLC unlocks fee-reduced BLC-USDT swaps: When exchanging BLC for USDT, you can burn a portion of your vBLC to receive a discount on exchange fees. The more vBLC you burn, the lower the fee you'll pay.
Last updated