💯PSY 101

PSY UI

Mission

"Deliver descentralised and scalable stablecoin in the DeFi Space"

Protocol Overview

PSY is a CDP platform for yield-bearing assets such as LSDs on Arbitrum.

It offers you an opportunity to leverage your LST rewards and farming rewards on DEXes or LSDFi protocols up to 11x by borrowing in the most capital-efficient and cost-effective way, using your LSD position.

Key Features

PSY provides three unique features.

• Multi-collateralisation

We accepts multiple types of Liquid Staking Tokens(LSTs) as collateral. The key point here is that PSY also accepts DEX LP for LST pairs and Principal tokens for LSDFi as outlined below. In other words, you can earn your LST rewards and farming rewards (including trading fee rewards) from LSDFi and DEXes, while collateralizing them to mint SLSD.

List of collaterals:

• LSTs (e.g, sfrxETH, wstETH, rETH)

• DEX LPs (e.g., frxETH/ETH, wstETH-ETH LP tokens on Ramses, Chronos)

• Lending deposit receipts (e.g., Radiant's LP)

• Principal tokens (Pendle's wstETH PT)

• Capital Efficiency & High Leverage

With our minimum collateral ratio set at 110%, the PSY protocol ensures that borrowers maximise their capital's potential. It allows users to leverage their LST rewards and DEX rewards by up to 11x.

Leverage Loop

• ve(3,3) tokenomics

The critical point for stablecoin is its utility across the DeFi space, and we need to attract liquidity to DEX pools for $SLSD pairs.

With ve(3,3,) tokenomics, we will incentivize community partners to incorporate $SLSD as their stablecoin as well as DeFi users to provide liquidity into the $SLSD paired pools by distributing $PSY reward emission through voting. Also, we are aiming for community-driven protocol. If you lock PSY and become vePSY holders, you will be rewarded by fees, bribes and token rebase. By implementing ve(3,3) tokenomics, we’d like to reward PSY stakers with those incentives for actively participating in our governance.

Architecture

Minters collateralize LSD tokens and borrow $SLSD from trove. Stability pool is set to liquidate in case trove(s) are below the minimum collateral ration and anyone can be liquidator and get rewarded with PSY and collateral tokens by depositing SLSD. And liquidity pools are rewarded by ve(3,3) tokenomics and governance.

Roadmap

In Q3 this year, we will launch ve(3,3) governance and implement the multi-collateral module for user’s benefit. In Q4, we will deploy leverage module, and try expanding $SLSD utility through protocol collaboration. Next year, we will explore LSD strategy, and expand our ecosystem further through to deliver universal LSD collateralised stablecoin.