PWRD Stablecoin
A Stablecoin with PWRs, designed to be the most useful stablecoin on the market
PWRD is low-risk savings product. Designed to offer safer access to DeFi yields, tokenised as a stablecoin with built-in yield and protection. Its value is backed by three of the most traded stablecoins on the market—DAI, USDC, and USDT—but also shielded against problems with any of them.
As Gro spreads risk across stablecoins in selection of Yield strategies, this helps to protect PWRD if a stablecoin paired with 3CRV (DAI, USDC, USDT) fails or gets censored. It then offers Deposit Protection, as the risk tranching mechanism means that any loss of capital from yield strategies is first absorbed by the Vault, letting PWRD generate yield more safely.
On top of this, PWRD's price is designed to be more stable than its component stablecoins. Exchanges in and out of PWRD are done using Curve as a price oracle to price the deposited assets. This allows the protocol to have a responsive valuation of stablecoins and offer the fair exchange rate prevalent in the market. In order to prevent price instability due to manipulated Curve prices, we use Chainlink as a second line of defence to sense-check prices. This design allows PWRD to remain closer to the USD peg even if one of its component stablecoins deviates from it. Learn more about these safety mechanism in Safety mechanisms.
Finally, holding PWRD generates yield from Gro Protocol. While the PWRD token itself is pegged to the dollar, yield accrues to holders of PWRD through a Rebasing mechanism as additional tokens into your wallet, without requiring any claiming or staking actions.
PWRD is a superior stablecoin offering both built-in deposit protection and yield. It's fully backed by three major stablecoins, but can handle the failure of any of them. It has built in yield, delivered as a stream of new tokens straight into your wallet. Plus, the longer you hold it, the more of the HODL contribution you'll get. We dare you to find a better stablecoin.
DeFi is still a very new space, and while that's exciting, it comes with risk. Gro Protocol's software helps you access this world, but make sure you do your own research and only supply assets you can afford to lose.
Last modified 8mo ago