📍 USDH Price Stability
$USDH, Hoard's decentralized stablecoin, is backed by a basket of algorithmic stablecoins such as $MIM, $USDD, $LUSD, $FEI, and $sUSD. Diversified collateral (in the form of other stablecoins) is key to price stability. All $USDH is backed 1:1 by the aforementioned algostables.
$USDH remains pegged to the US dollar through its ability to always be minted and redeemed for $1.00 of value.
If $USDH trades below a dollar, it can be bought on the open market and redeemed within the protocol for $1.00.
If $USDH trades above a dollar, it can be minted for $1.00 and sold on the open market for more.
Simple arbitrage keeps $USDH trading in parity with the US dollar.
Last modified 8mo ago