Certo Expands Testnet to Include USDC Deposits for stUSD, its Interest-Earning Stablecoin
Zurich, Switzerland, July 8th, 2024, Chainwire
Quick take
- Certo protocol, decentralized stablecoin lending, previously working with USDT, has added support for USDC deposits and borrows.
- stUSD is an interest-earning stablecoin utilizing Certo — a P2P lending protocol designed to work with tokenized real-world assets in the form of U.S. Treasuries.
Certo, as detailed on certo.finance, represents a pioneering approach in the realm of decentralized finance (DeFi). It is a peer-to-peer (P2P) lending platform that brings real-world assets into the space. Specifically, Certo facilitates the use of tokenized U.S. Treasuries as collateral in a lending stablecoins — and a lender of traditional stablecoins, the user receive the interest accrued to the borrowers.
stUSD is Certo’s dollar-denominated receipt token, which can be seen as a form of interest-earning stablecoin. This digital currency maintains a stable relationship to the U.S. dollar by using a stable collateral of tokenized U.S. Treasuries to maintain price stability, serving as a reliable medium of exchange and a value store for the whole DeFi ecosystem. More importantly, stUSD is designed to generate interest for its holders, which accrues over time based on the underlying lending activities conducted through the Certo protocol. This feature makes stUSD a potential choice for price stability and interest in the volatile landscape of cryptocurrencies.
Certo has been under development for some time, with its ambitious goal to bridge the gap between DeFi and real-world assets. Initially, when Certo launched its testnet earlier this year, it exclusively supported deposits and borrowing in Tether (USDT), a widely used stablecoin in the cryptocurrency market. This initial phase allowed Certo to test its systems, ensure robust security measures, and gather valuable feedback from early users within a controlled environment.
Today, Certo takes a significant step forward by announcing the addition of support for USD Coin (USDC) deposits and borrows on its testnet platform. This expansion is pivotal as USDC is renowned for its wide acceptance across financial and crypto markets. By incorporating USDC, Certo aims to attract a broader user base and increase the platform’s versatility, allowing more users to participate in testing and refining the protocol’s features.
With the inclusion of USDC, participants in the Certo ecosystem now have the flexibility to deposit both USDT and USDC to receive stUSD. This enhancement allows users to preview how their investments accrue interest over time, directly within the Certo interface. This dual-stablecoin option not only provides greater convenience but also enriches the user experience by demonstrating the practical benefits of stUSD in a more diverse and adaptable framework.
While today’s announcement marks a significant milestone, it is important to note that Certo is still operating within its testnet phase. This stage is critical as it allows the developers to finetune the protocol’s functionality, ensure the stability of the system under various scenarios, and most importantly, secure user feedback. The testnet phase is essential for Certo to meet its goal of creating a seamless and secure bridge between cryptocurrencies and real-world assets, ensuring that once live, the platform can operate effectively and reliably in the broader DeFi ecosystem.
Through initiatives like these, Certo is not just expanding its capabilities but also paving the way for more innovative solutions in the financial technology space.
About Certo
Certo is at the forefront of developing a secure, stable, and scalable platform, aiming to bridge the gap between traditional fiat currencies and the digital economy. With a focus on security, transparency, and community-driven development, Certo seeks to provide a robust foundation for financial transactions worldwide.
