Why Choose avUSD?

avUSD operates similarly to market strategies like those seen with Ethena and Frax, where the focus is on maintaining the intrinsic value and utility of the token rather than direct yield generation for holders. Incentives for avUSD are strategically designed to enhance its functionality within liquidity and lending markets, making it an attractive option for borrowing. Conversely, savUSD is positioned as an excellent choice for collateral usage due to its yield-bearing nature.

Incentives and Rewards

A key strategy for growing the adoption and utility of avUSD involves directing incentives such as token rewards towards enhancing its presence in liquidity pools and lending markets. This approach aims to make avUSD a preferred borrowing asset while savUSD serves as productive collateral. Additional incentives will be applied through strategies like vote bribes to further encourage the use of avUSD and ensure its competitive edge.

To summarize, avUSD offers unique advantages within the DeFi landscape:

Stability and Utility

Modeled on successful strategies from platforms like Ethena and Frax, avUSD maintains its intrinsic value and utility, making it a reliable choice for borrowing.

Yield Opportunities

Through its staked version, savUSD, it provides an avenue for earning returns, making it ideal for use as productive collateral.

Enhanced Market Integration

Strategic incentives such as enhanced presence in liquidity pools and vote bribing promote widespread use and ensure avUSD remains competitive in the DeFi market.