🪙What is $ocUSD?

$ocUSD is a over-collateralized, decentralized stablecoin that anchors its value through a carefully balanced issuance protocol. To mint $ocUSD, users deposit collateral such as $ETH, $USDC or $wstETH into a Collateralized Debt Position (CDP) that must exceed the value of the $ocUSD created.

Governed by predefined parameters, the Collateral Ratio (CR) of a CDP is maintained above a specific threshold. Should this ratio drop beyond the Minimum Liquidation Threshold, the system triggers a liquidation of the CDP's assets to safeguard the stablecoin's value.

Our documentation explores the dynamics of $ocUSD, a stablecoin underpinned by assets such as $ETH, $USDC and $wstETH. It outlines how $ocUSD satisfies the dual mandate: enabling stablecoin holders to earn interest income and compromising the foundational attributes of a stablecoin.

$ocUSD leverages decentralized smart contracts, which tap into the lucrative yields from collaterized assets, to offer a stablecoin that is not only price-stable but also able to be used to create interest income. With the introduction of $ocUSD, we reconcile the benefits of traditional stablecoins with the ability to produce interest, crafting a superior and functional stablecoin variant for holders.