Popular decentralized finance (DeFi) platform Yearn Finance has announced a new lending protocol dubbed StableCredit.
StableCredit combines tokenized debt stablecoins, lending, and single-sided automated market makers to offer what it describes as “a completely decentralized lending protocol” reminiscent of MakerDAO (MKR).
Introducing StableCredit, a new protocol for decentralized lending, stablecoins, and AMMs. https://t.co/Cuoo2OMi5H
— yearn.finance (@iearnfinance) September 10, 2020
Users can deposit USD Coin (USDC) to mint StableCredit USD at a ratio of up to 75%, which can then be then exchanged for other crypto assets. To release the locked USDC, users must deposit the borrowed StableCredit USD back into the protocol.
A September 10 announcement states that StableCredit’s user interface is currently being finalized, predicting the protocol will be publicly launched “in the coming weeks.”
The protocol notably will not distribute a governance token to users — a tactic frequently used to incentivize the use of new DeFi platforms. Yearn Finance’s own governance token YFI has been