Interpretation of the RGB++ Layer's First Stablecoin Protocol Stable++

Stable++ is the first stablecoin protocol within the RGB++ Layer ecosystem, using a CDP mechanism to generate RUSD stablecoins backed by BTC and CKB as collateral. This protocol combines the Stability Pool insurance pool and bad debt redistribution mechanism to provide reliable stablecoin minting scenarios for BTC and CKB holders. Together with CKB's unique issuance method, Stable++ can construct an under-damped system within the RGB++ ecosystem, serving as a moderate buffer during severe market fluctuations.

Stable++ Product Features and Mechanism Design

The main features of Stable++ include:

1. Users can borrow RUSD stablecoin by over-collateralizing BTC or CKB, and can also redeem collateral using RUSD. There will be a fee for the collateralization and redemption operations.

2. Users can pledge the borrowed RUSD back to Stable++ to obtain governance tokens STB as a reward, while also gaining the right to participate in asset liquidation.

3. Users can stake governance token STB back to Stable++, and earn a share of the collateral and redemption fees based on the weight of the staked STB.

4. RUSD supports homomorphic binding and the Leap function, enabling cross-chain transfers.

5. Stable++ has an LSD section where NervosDAO users can stake CKB to receive wstCKB.

The Rationality and Efficiency of the Clearing Mechanism

Stable++ adopts a dual insurance mechanism of "Stability Pool" and "Redistribution" to ensure the efficiency of the liquidation process:

1. The Stability Pool allows users to deposit RUSD as a "standing army" to liquidate bad positions. During liquidation, the RUSD in the insurance pool will be directly destroyed, and the LP will receive the collateral from the liquidated position.

2. When the Stability Pool funds are insufficient, the Redistribution mechanism will be activated, distributing the debts and collateral of the liquidated positions proportionally to all existing positions.

This dual-pronged efficient settlement approach can effectively address bad debt issues in traditional lending protocols while allowing borrowing at a lower collateral rate of (, such as within 110% of ), thereby improving capital utilization.

Build an Under-Damped System within the Ecosystem

The issuance mechanism of Stable++ and CKB constitutes a relatively healthy token economic system, which can form a "negative damping mechanism":

1. When the price of CKB rises, more people will use CKB to collateralize and mint RUSD, locking up CKB supply.

2. The minted RUSD increases on-chain DeFi activity.

3. Indirectly reduce the CKB inflation rate while increasing miner profits.

This mechanism helps to regulate the supply and demand relationship of CKB, providing stability for the entire ecosystem.

The Necessity of Stable++ from a Market Perspective

1. The cryptocurrency market needs large-scale decentralized stablecoins to reduce reliance on centralized stablecoins.

2. The current market value of stablecoins is only a small portion of the total market value of Bitcoin, and there is still significant growth potential for BTC-based stablecoins.

3. With the development of the RGB++ Layer ecosystem, BTCFi's infrastructure on CKB is gradually improving, providing good technical support for Bitcoin-based stablecoin protocols.

The emergence of Stable++ will bring new imaginative space to the BTCFi ecosystem, and the CKB ecosystem will also become a fertile ground for entrepreneurs, with a promising future.