BlockBeats News, May 15th, according to Cointelegraph, Pareto, a private lending market platform, has launched a new type of synthetic dollar called USD, aimed at connecting institutional investors with decentralized finance (DeFi) opportunities. This synthetic dollar is fully backed by real-world private lending assets, and users can mint it by depositing stablecoins such as USDC or USDT at a 1:1 ratio.
Pareto co-founder Matteo Pandolfi explained that the deposited funds will be placed in Pareto's credit pool and lent to vetted institutional borrowers, generating returns for participants. To maintain its peg to the dollar, Pareto employs a "native support" process and arbitrage mechanism, and has established a protocol-funded stability reserve as a buffer in case of borrower default.
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