Unit Protocol

Unit Protocol is a decentralized finance (DeFi) protocol that mints USDP stablecoins by collateralizing them with multiple tokens. Investors then use USDP to issue stabilized loans, without having to worry if the value of the collateral will go down overnight.

Unfortunately, there is confusion surrounding the USDP stablecoin because there are two tokens with the same ticker.

Paxos launched Pax Dollar (USDP) stablecoin in September 2018, and it is fully regulated and backed by U.S. dollars deposited in a bank.

There is a second USDP stablecoin that was launched by Unit.xyz in November 2020. The fact it has an identical ticker symbol — USDP — as Pax Dollar doesn’t make things easier for investors.

Unit also issues USDP as an ERC-20 token on Ethereum, but the Unit protocol does it differently because it runs as a decentralized platform, not a centralized company like Paxos.

Unit Protocol adheres to the spirit of decentralized finance (DeFi) by solely using cryptocurrencies to back USDP’s redeemable reserves, much like Dai stablecoins.

Unit Protocol adheres to the spirit of decentralized finance (DeFi) by solely using cryptocurrencies to back USDP’s redeemable reserves, much like Dai stablecoins.