CoinVoice has recently learned that, according to Cointelegraph, the Pareto private credit market platform has launched a new synthetic dollar, USP, aimed at connecting institutional investors with decentralized finance (DeFi) opportunities. This synthetic dollar is entirely backed by real-world private credit assets, and users can mint it by depositing stablecoins such as USDC or USDT at a ratio of 1:1.
Pareto co-founder Matteo Pandolfi explained that the deposited funds will be placed in Pareto's credit vault and lent to vetted institutional borrowers, generating returns for participants. To maintain the peg with the dollar, Pareto employs a 'native support' process and arbitrage mechanisms, and has established a protocol-funded stability reserve as a buffer in case of borrower defaults. [Original link]
