TaoBank
  • TaoBank overview
    • Problem Statement
    • How TaoBank Stands Out
  • Protocol
    • Our stablecoin: taoUSD
    • Minting $taoUSD
    • Vaults
      • Issuance Fee
    • Redemptions
    • Liquidations
    • Oracles
  • Tokenomics
    • Our revenue sharing token: TBANK
  • Future Roadmap (February 2025 Update)
    • CEX Listings (Ongoing)
    • Enhanced Liquidity Partnerships (Ongoing)
    • New products (Ongoing)
    • Governance and Community Engagement (Ongoing)
    • Expansion to Bittensor (Q1 2025)
    • Expansion to Solana (Q1-Q2 2025)
    • Liquid Staking Derivatives for Dynamic TAO (Q2–Q3 2025)
    • Maximizing Staking Returns for wTAO Holders (Ongoing)
  • Official Links
    • Twitter
    • Website
    • Telegram
Powered by GitBook
On this page
  1. Protocol

Our stablecoin: taoUSD

taoUSD is the first over-collateralized stablecoin backed by wTAO

taoUSD is engineered to be a low-volatility stablecoin, soft-pegged to the US dollar. The protocol incorporates several mechanisms to ensure minimal price deviation (between $0.995 and $1.005):

  • Debt Issuance and Repayment: If taoUSD's price falls below parity by more than the issuance fee, users are incentivized to buy taoUSD to repay their interest-free debt. Conversely, if the price exceeds parity by more than the issuance fee, users are incentivized to borrow more to purchase assets at a discount.

  • Liquidity incentives: TaoBank partners with other protocols to provide incentives for taoUSD/USDC liquidity on Uniswap.

  • Redemptions: Redemptions are restricted to protocol-owned whitelisted addresses, preventing fund exit from the protocol. Profits from redemptions are used to increase liquidity for taoUSD and TBANK (see below for the TBANK token).

  • Liquidations: In the event of liquidations, vaults are auctioned via a Dutch auction, where bidders can buy collateral assets at a discount with taoUSD. If no bids are received, the protocol executes the liquidation.

PreviousHow TaoBank Stands OutNextMinting $taoUSD

Last updated 12 months ago

Page cover image