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Yesterday — 24 January 2026Main stream

What Are the Best Strategies to Attract Real Users to Your P2P Exchange?

24 January 2026 at 06:37

Building a P2P exchange is easy earning real user trust is the real challenge. This blog shares simple, practical strategies to attract genuine users, build confidence, and grow a P2P exchange that people actually enjoy using.

The technology may be ready, but real success begins when genuine users start trusting your platform and trading regularly. Attracting real users isn’t about aggressive promotion, it’s about building something people feel comfortable using. When P2P Crypto Exchange Development is approached with empathy and clarity, users don’t just sign up, they stay.

Start by Understanding What Users Truly Care About

Every successful platform starts with a simple understanding: users don’t care about features as much as they care about outcomes. They want safety, flexibility, and control. When founders focus on solving real user problems instead of copying competitors, the platform naturally stands out. A user first mindset during P2P Crypto Exchange Development helps create an exchange that feels purposeful, not generic.

Trust Is Built Quietly, Long Before the First Trade

Trust doesn’t come from promises, it comes from clarity. Users want to understand how trades are protected and what happens if something goes wrong. When transparency is built into the experience, users feel confident enough to act. A calm, reassuring approach to trust during P2P Crypto Exchange Development creates confidence without needing loud messaging.

The First Experience Often Decides Everything

The first few minutes on your platform decide everything. If users feel confused, they leave without explanation. If things feel simple and intuitive, they explore further. Exchanges that prioritize ease during P2P Crypto Exchange Development reduce friction and make users feel welcome rather than overwhelmed.

Clear Communication Builds Instant Confidence

Professional doesn’t have to mean complicated. Clear, friendly language builds stronger connections than technical explanations. When users understand what’s happening at every step, they feel respected. Thoughtful communication throughout P2P Crypto Exchange Development turns uncertainty into confidence.

Make Your Platform Fit Naturally Into Everyday Life

People trust platforms that align with how they already operate. Supporting familiar payment methods and local preferences makes your exchange feel practical and relevant. When real life usability is considered during P2P Crypto Exchange Development, users don’t need to adjust their habits; they simply participate.

Early Users Shape the Future of Your Exchange

Early users are more than sign ups, they are your first believers. When they feel valued, they share their experience organically. A respectful, fair approach during P2P Crypto Exchange Development turns early adopters into long-term supporters who help shape your platform’s reputation.

Helping Users Learn at Their Own Pace Builds Loyalty

Not every user arrives ready to trade immediately. Some need time to understand how things work. Simple guidance and patient education help users build confidence at their own pace. When learning is part of P2P Crypto Exchange Development, users feel supported rather than pressured.

Users Stay Where the Platform Feels Alive

Users stay where they feel noticed. Quick responses, visible improvements, and open to feedback create a sense of presence. A platform designed with care during P2P Crypto Exchange Development feels alive, trustworthy, and worth returning to.

Consistency Is What Turns Users Into Regular Traders

Trust grows through repetition. When a platform performs reliable day after day, users relax and trade more freely. Strong foundations in P2P Crypto Exchange Development ensure the exchange grows without losing stability, which is essential for long-term confidence.

Authenticity Is What Makes Users Believe in You

Users recognize authenticity. When marketing reflects the actual experience, trust deepens naturally. An honest approach aligned with P2P Crypto Exchange Development creates relationships built on respect, not exaggeration.

Conclusion

Attracting real users to your P2P exchange is a gradual, people driven process. Business owners and startups that succeed focus on trust, simplicity, and genuine value rather than quick wins. When users feel understood and protected, growth follows naturally. Building with intention and care makes all the difference, and partnering with a depend on P2P Crypto Exchange Development Company like Beleaf Technologies can help turn this thoughtful approach into a platform users truly trust and recommend.


What Are the Best Strategies to Attract Real Users to Your P2P Exchange? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Before yesterdayMain stream

South Korea loses $48m in seized Bitcoin after phishing attack

23 January 2026 at 09:04
South Korean prosecutors are investigating the disappearance of approximately $48 million in seized Bitcoin following a suspected phishing attack, according to local media reports. The Gwangju District Prosecutors’ Office discovered the missing digital assets during a routine inspection of confiscated…

Pi Network, XRP, and Ethereum sink on Trump risk – is more downside coming?

23 January 2026 at 08:48
Pi Network, XRP, and Ethereum all sold off over the past week as Trump’s Greenland ambitions unnerved risk markets, with on-chain and technical signals suggesting more volatility before any sustainable rebound. Pi Network (PI) is trading around $0.18 after a shallow bounce…

Trump sues JPMorgan in $5b ‘debanking’ battle over 2021 account closures

23 January 2026 at 08:36
Trump filed a $5b lawsuit in Florida accusing JPMorgan and Jamie Dimon of politically motivated “debanking” after his accounts were closed in 2021, reviving concerns over bank power and crypto‑style de‑risking. U.S. President Donald Trump filed a lawsuit against JPMorgan…

Silver bulls eye $110 breakout as short squeeze and Fed bets collide with BTC in the crosshairs

23 January 2026 at 08:27
Silver and gold have ripped to record highs on a historic short squeeze, weak dollar, and Fed‑cut hopes, while Bitcoin and Ethereum lag as higher‑beta, liquidity‑sensitive hedges that could catch up if macro stress and easing continue. Silver and gold…

Is Ethereum price gearing up for a $4,000 breakout as BitMine chases a 5% supply stake?

23 January 2026 at 05:48
Ethereum price is trading around $3,00 per ETH right now. A reasonable base case is a choppy range between roughly $2,400 and $3,600 over the next 6–12 months, with upside capped unless macro and ETF flows turn decisively risk‑on again. Ethereum price…

BitGo vs Circle IPO: Which 2026 public listing offers the safer crypto bet?

23 January 2026 at 04:48
BitGo’s 2026 NYSE IPO tests its fee-based custody model against Circle’s USDC interest-revenue engine as investors pick between infrastructure stability and stablecoin volatility. BitGo’s debut on the New York Stock Exchange has immediately sharpened the market’s focus on whether the…

Bitdeer leapfrogs MARA as top Bitcoin miner by hashrate and AI pivot

23 January 2026 at 04:36
Bitdeer overtakes MARA in total hashrate as SEALMINER chips scale mining and fund an aggressive AI infrastructure expansion. Bitdeer Technologies Group has surpassed MARA Holdings to become the largest bitcoin mining company by total hashrate under management, according to recent…

Trump-Linked World Liberty Financial Partners With Spacecoin on DeFi Initiative

By: Amin Ayan
23 January 2026 at 01:36

World Liberty Financial, the crypto project associated with the family of US President Donald Trump, has entered a partnership with satellite startup Spacecoin to explore how decentralized finance could operate over space-based internet infrastructure.

Key Takeaways:

  • World Liberty Financial is partnering with Spacecoin to explore DeFi over satellite internet.
  • The USD1 stablecoin is positioned for payments in remote and underserved regions.
  • The move supports the project’s broader effort to expand USD1’s global use.

In a blog post published Thursday, Spacecoin said the collaboration includes a token swap between the two projects, though financial terms were not disclosed.

The companies said the partnership is aimed at expanding access to digital financial services in regions where traditional banking and broadband infrastructure remain limited.

World Liberty Financial Says USD1 Targets Real-World Payments in Underserved Areas

Zak Folkman, co-founder of World Liberty Financial, said the initiative aligns with the project’s broader focus on real-world payments and settlement.

He said the USD1 stablecoin is designed to support transactions in environments where conventional financial rails are unavailable or unreliable, including remote and underserved areas.

Spacecoin is building a low-Earth orbit satellite network intended to provide internet connectivity beyond the reach of terrestrial broadband.

The company said it has already launched three satellites and is positioning its system as a decentralized physical infrastructure network, or DePIN, that could support financial and communications services in hard-to-connect regions.

The partnership comes as World Liberty Financial continues to broaden the use cases for its USD1 stablecoin.

🛰 MAJOR ANNOUNCEMENT 🛰

In a move anchored by a token swap with @worldlibertyfi, we’re entering into a strategic partnership to explore new solutions that converge the decentralized technology of finance and satellite internet connectivity.

Together, we will continue… pic.twitter.com/XnTRfdOKUx

— Spacecoin™ 🛰 (@spacecoin) January 22, 2026

Beyond payments, the project has expanded into crypto lending through its World Liberty Markets platform, while promoting USD1 as a settlement asset for onchain and offchain activity.

USD1, a dollar-pegged stablecoin launched last year, has grown rapidly. Its market capitalization now stands at approximately $3.27 billion, placing it among the larger stablecoins in circulation.

World Liberty Financial has also stepped up its international outreach.

Earlier this month, Pakistan signed a memorandum of understanding with a World Liberty affiliate to explore potential applications of USD1 in payments and remittances.

The agreement marked one of the first instances of a sovereign entity formally engaging with the Trump-linked protocol.

Bitcoin Loses 25,000 Millionaire Addresses Despite Pro-Crypto Turn Under Trump

As reported, Bitcoin has shed roughly 25,000 millionaire addresses in the year since Donald Trump returned to the White House, even as US policy shifted toward a more crypto-friendly stance.

Blockchain data shows the number of addresses holding at least $1 million in BTC fell about 16% year over year, suggesting regulatory optimism has not translated into sustained on-chain wealth growth.

The pullback was less severe among the largest holders. Addresses with more than $10 million in Bitcoin declined by about 12.5%, indicating that top-tier investors were better able to withstand price volatility, while wallets near the millionaire threshold were more exposed to market swings.

Much of the increase in Bitcoin millionaire addresses occurred before Trump took office, driven by a late-2024 rally fueled by election-related optimism and expectations of deregulation.

The post Trump-Linked World Liberty Financial Partners With Spacecoin on DeFi Initiative appeared first on Cryptonews.

Senate Ag Committee Unveils Crypto Market Structure Bill Draft, Markup Set For Jan. 27

23 January 2026 at 00:00

Following the unsuccessful markup of the long-awaited crypto market Structure bill (CLARITY Act) by the Senate Banking Committee, the Senate Agriculture Committee unveiled a new draft of the bill, with a scheduled markup session for Tuesday, January 27.

Stablecoin Yield Regulations Excluded

The Agriculture Committee’s version of the bill primarily addresses regulations under the Commodity Futures Trading Commission (CFTC), which would gain expanded authority to regulate cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). 

In contrast, the Senate Banking Committee’s section of the legislation focuses on the Securities and Exchange Commission (SEC) and its oversight. Notably, the Agriculture draft allocates $150 million to support the CFTC in the implementation of the proposed law.

Market expert James Murphy reviewed the key provisions of the new draft and expressed optimism about its implications. He highlighted that the bill creates a pathway for decentralized finance (DeFi) to avoid CFTC regulation, providing important protections for developers and specific service providers from liability. 

The Senate Agriculture Committee’s draft also excludes any regulations concerning stablecoin yields. This decision is significant, particularly as it addresses a critical provision that resulted in Coinbase (COIN) withdrawing its support for the Banking Committee’s version of the bill last week. 

The Banking Committee’s version of the CLARITY Act aims to limit the yield that stablecoin platforms can offer. While banks support this approach due to concerns about deposits potentially flowing out, crypto firms oppose it, arguing that such restrictions hinder competition. 

In contrast, the Agriculture Committee bill seeks to exempt stablecoins from CFTC regulations and relies on existing frameworks like the already passed stablecoin bill, or GENIUS Act, which mandates that stablecoins be fully backed.

Banking Committee Delays Crypto Bill’s Consideration

Senate Agriculture Chair John Boozman expressed appreciation for the collaborative efforts among lawmakers, particularly mentioning Senator Cory Booker and his staff for their contributions to consumer protections and CFTC authority. 

Despite the remaining differences in fundamental policy issues with its Democratic counterpart, the Committee’s chair emphasized the importance of moving the bill forward:

While it’s unfortunate that we couldn’t reach an agreement, I am grateful for the collaboration that has made this legislation better. It’s time we move this bill, and I look forward to the markup next week. 

But amid the broader cryptocurrency industry’s optimism surrounding the Agriculture Committee’s version of the market structure bill, the timeline for advancing the overall legislation remains uncertain. 

Bloomberg reported that the Senate Banking Committee is expected to delay consideration of its own portion of the bill, which could push discussions into late February or even March.

Crypto

Featured image from OpenArt, chart from TradingView.com 

Bitcoin At The Core: ARK Sees $28 Trillion Digital Asset Future

22 January 2026 at 21:00

ARK Invest’s new roadmap puts a big number on the table, and it’s hard to ignore. Reports say Cathie Wood’s firm’s “Big Ideas 2026” research paints a scenario where the total value of crypto climbs to about $28 trillion by 2030.

Big Ideas Point To A Shift

According to ARK and its public writeups, that $28 trillion is not blind optimism. The firm breaks the future into three main drivers: Bitcoin, decentralized finance, and tokenized real-world assets.

Reports note Bitcoin could make up roughly 70% of that total, which would mean about $16 trillion in Bitcoin market cap by 2030.

DeFi And Tokenized Assets Take The Stage

DeFi platforms and smart-contract networks are expected to grow a lot. ARK’s scenario puts smart money and on-chain services as a major contributor to market value in the run up to 2030.

The firm also projects tokenized real-world assets — things like tokenized bonds, property shares, and other financial products moved onto ledgers — to climb into the trillions, with some reports pointing toward around $11 trillion for tokenization.

How Bitcoin Fits Into The Picture

Given the share ARK assigns to Bitcoin, the math pushes toward very large per-coin prices if that scenario plays out. Reports say ARK’s base case uses a little over 20 million Bitcoins in supply by 2030 and implies a per-coin price that could sit near the high hundreds of thousands — commonly quoted numbers range up to about $950,000 to $1,000,000 in that framework.

Fast Growth Assumptions

To reach $28 trillion, the forecast depends on very steep growth each year. ARK points to an implied compound annual growth rate near 61% from present levels to 2030. That is aggressive. It would mean rapid gains across many segments of the crypto market, not just a single rally.

Reports and industry analysts warn that the path to that future has a long list of hurdles. Regulation must become clearer in many places. Institutional rails and custody tools need to expand and prove reliable.

Market sentiment has to stay positive long enough for major capital flows to arrive. Any of these things going wrong would change the numbers quickly.

ARK’s “Big Ideas 2026” details a robust vision of a $28 trillion ecosystem driven by Bitcoin, DeFi, and tokenization. Although it holds a rather ambitious 61% growth trajectory riddled with numerous regulatory and market obstacles, the vision reinforces the faith of ARK Invest in the transformation of the digital asset space from being a speculative domain to the nucleus of the global finance system.

Featured image from Unsplash, chart from TradingView

Solana DAT’s $DONT Memecoin Hits $26M – But Degens Are Warned: “Don’t Buy It”

22 January 2026 at 17:50

Defi Development Corporation has pushed the boundaries of crypto culture and corporate experimentation after launching what it describes as the world’s first memecoin created by a publicly traded company.

The company’s move has already ignited controversy across the Solana ecosystem.

1/ ⚠ ANNOUNCING $DONT ⚠

Today, we announce @disclaimercoin, the first-ever publicly traded company-created memecoin launched via @bonkfun.

No roadmap, no utility, no cabal, & no promises.
Just a disclaimer: DONT buy it.

30% will sit on $DFDV's balance sheet FOREVER. 🧵 pic.twitter.com/epOPX3NPUk

— DeFi Dev Corp. (DFDV) (@defidevcorp) January 22, 2026

The token, called DisclaimerCoin and trading under the ticker $DONT, briefly surged to a market capitalization of more than $26 million within hours of launch.

DFDV Launches $DONT Memecoin as a Corporate Experiment

The launch comes at a time when Solana’s memecoin market remains hyperactive, driven by speculation, rapid liquidity rotation, and a growing overlap between on-chain culture and institutional capital.

Against that backdrop, DFDV’s decision to issue a memecoin has raised questions not only about market behavior but also about how far publicly listed companies can go in embracing crypto-native norms without crossing regulatory or ethical lines.

DeFi Development Corporation said that $DONT was intentionally released without a utility, roadmap, or promises.

The company framed the token as a live experiment rather than a product, stating that it exists purely to test what happens when a real corporation engages directly with internet-native markets.

In a post confirming the launch, DFDV executive Dan Kang said the token was legitimate and reiterated a simple message to traders: “Don’t buy it.”

Yes, it’s real. No, we were not hacked.

Don’t buy it. https://t.co/u1a9anbBD7

— DK (@CryptoIRGuy) January 22, 2026

Despite this, on-chain activity of the token has seen massive activity.

Within two hours of launch on the Bonk.fun platform and Raydium liquidity pools, $DONT climbed rapidly, with early wallets recording outsized gains.

Source: Raydium

On-chain Data Flags Early Profits in $DONT Debut

On-chain data shows that some addresses were able to trade the token profitably before or immediately after the public announcement, fueling speculation about insider access or privileged information.

One wallet reportedly sold billions of $DONT tokens for hundreds of thousands of dollars in profit without purchasing them on the open market.

Meanwhile, other wallets linked by analysts to validator infrastructure associated with DFDV also posted gains.

The suspicious activity has added to skepticism, particularly given Solana’s history of high-profile memecoin launches tied to compromised social media accounts.

However, Defi Development Corporation has repeatedly affirmed the authenticity of the token that $DONT was officially issued by DFDV.

Tokenomics published by the company outline a fixed supply of 420 billion $DONT, with no inflation mechanism.

Thirty percent of the supply is held permanently on DFDV’s balance sheet, forty percent was allocated to public liquidity, and twenty percent was reserved for ecosystem and community purposes.

Additionally, ten percent is assigned to early contributors, including employees subject to predefined sales rules.

As a result of the price surge, the balance sheet allocation alone briefly translated into an estimated $8 million increase in the company’s reported on-chain assets.

DeFi Development Sticks With Solana Despite Treasury Drawdown

The move fits into a broader pattern of experimentation by DeFi Development Corporation, which has positioned itself as an unconventional digital asset treasury firm.

✅ DeFi Development (@defidevcorp) expanded its stock buyback program to $100M, holding over 2M $SOL tokens.#DeFi #Solana https://t.co/G6CGnoAK7p

— Cryptonews.com (@cryptonews) September 24, 2025

Since adopting its non-Bitcoin DAT strategy in 2025, the company has tokenized its stock on-chain, operated validators as a treasury function, and deployed capital into Solana DeFi protocols to generate yield.

The firm ended 2025 as one of the top-performing crypto-linked Nasdaq stocks, even as the broader Solana market faced declining prices.

That context is important, as Solana-focused treasuries have been under pressure in recent months. With SOL down sharply from late 2025 highs, many DATs have seen treasury values fall, and net asset values compress.

DFDV’s treasury, currently valued at roughly $283 million and centered around nearly 2.2 million SOL, has declined by more than 30% over the past three months, underscoring the financial strain across the sector.

The post Solana DAT’s $DONT Memecoin Hits $26M – But Degens Are Warned: “Don’t Buy It” appeared first on Cryptonews.

Crypto’s Q4 Weakness Mirrors Pre-Rebound 2023: Analysts

22 January 2026 at 12:00

Bitwise’s take on the final months of 2025 reads like a careful, hopeful note rather than a loud market call. Momentum on the chains rose even as prices stalled, and that gap is exactly what has traders talking. Some think it marks a bottom. Others say it’s too soon to be sure.

Crypto: On-Chain Activity Surges

According to Bitwise, Ethereum activity and layer-two transactions climbed to new highs, and decentralized trading grew markedly. Stablecoin supplies also swelled, with the total market cap passing the $300 billion mark in Q4.

Reports note that decentralized exchange volumes at times matched or exceeded those of major centralized venues. These are hard numbers. They are signs that real use and liquidity are expanding under the surface.

The latest Bitwise Crypto Market Review just dropped—and it’s the most important one we’ve ever published.

Why? Because it shows a tension in crypto markets that has historically signaled a bear-market bottom (see Q1 2023).

Receipts: During Q4 2025…

– ETH’s price fell 29% ……

— Bitwise (@BitwiseInvest) January 21, 2026

Why Prices Have Lagged

Bitwise’s chief investment officer, Matt Hougan, compared this setup to early 2023 when prices trailed rising fundamentals before a significant rebound took hold over the following two years.

The comparison makes sense on paper. Price can be stubborn. Market psychology often lags behind on-chain realities, and traders sometimes wait for a clearer macro story before committing capital.

Fundstrat’s Tom Lee offers a counterpoint, saying the year could be bumpy until late, with tariffs and political tensions weighing on risk appetite. That view keeps many investors cautious.

Crypto, Stablecoins And DeFi At The Center

According to market data, flows into stablecoins accelerated, and fund inflows to crypto firms outpaced several other sectors in the stock market. DeFi use was no longer a niche metric; it was central to the Q4 narrative.

“That’s the type of divergence you get at the bottom of bear markets, when sentiment is down but fundamentals are up,” Hougan said.

Some infrastructure firms reported rising revenues. At the same time, trading volumes remained muted compared with the peaks seen earlier, which helps explain the mismatch between on-chain strength and sideways price action.

Why This Might Matter For 2026

Bitwise highlighted 10 broad indicators it sees as health signs for the market, ranging from transaction counts to custody and fee trends. Progress on regulatory clarity was also flagged.

Reports say the Clarity Act could change how stablecoins are treated in the US, and a new US Federal Reserve chair could shift policy in ways that matter for risk assets.

Bitwise sees Q4 as a quiet period where things were improving behind the scenes, even if prices didn’t show it. The firm says this kind of gap between price and activity has happened before big rebounds. It doesn’t mean a rally will happen right away, but the market could be setting itself up for a stronger year ahead.

Featured image from Unsplash, chart from TradingView

vUSD on Bifrost: Building a Stablecoin on Cross-Chain Liquid Staking

22 January 2026 at 08:23

Liquid staking has become a foundational primitive in Proof-of-Stake ecosystems. It allows users to stake assets while retaining liquidity through derivative tokens, removing the need to choose between yield and flexibility. However, most liquid staking systems are still single-chain by design. While users receive a liquid representation of their staked assets, using that liquidity elsewhere often requires manual bridging, fragmented liquidity, and additional trust assumptions.

In a multi-chain ecosystem, this creates friction. Liquidity becomes siloed, and users are forced to actively manage cross-chain exposure rather than letting capital move naturally.

This is the problem space where vUSD on Bifrost is designed to operate.

Agenda

In this article, we will cover:

  1. How voucher tokens work and why parachains matter
  2. The earning dynamics behind voucher tokens
  3. Why stablecoins are a natural extension of liquid staking
  4. A Liquity-inspired borrowing model
  5. How vUSD works in practice
  6. Where to explore the implementation

How voucher tokens work and why parachains matter

Bifrost is designed as a Polkadot parachain, which fundamentally changes how liquid staking assets are issued and utilised.

Instead of creating liquid staking derivatives confined to a single chain, Bifrost introduces voucher tokens (vTokens) as cross-chain financial primitives.

Voucher Tokens and the Power of Parachains

When a user stakes through Bifrost:

  • The underlying asset is staked at the protocol level
  • A voucher token (such as vDOT or vETH) is issued
  • The vToken represents the staked position and accrues staking rewards over time

Because Bifrost operates as a parachain, these vTokens are designed to move across the Polkadot ecosystem, benefiting from shared security and native cross-chain messaging. Rather than being isolated receipts, vTokens act as portable, yield-bearing collateral. Which naturally leads to the question of how value continues to accumulate once these tokens are in circulation.

The Earning Dynamics of Voucher Tokens

Voucher tokens are yield-bearing by design. Staking rewards are continuously reflected in the value of the vToken relative to the underlying asset. Over time:

  • One vToken represents a growing claim on the staked asset
  • Users retain exposure to staking rewards
  • Liquidity is preserved without unstaking

This embedded yield is a critical property. It ensures that vTokens remain economically active even when they are no longer held in a passive staking position. Because yield continues to accrue, vTokens can safely be reused within DeFi without sacrificing their core purpose.

Once yield-bearing assets become composable, the next requirement is a stable unit of account to unlock more advanced financial use cases.

Why Stablecoins Matter for Voucher Tokens

As DeFi activity grows around voucher tokens, a stable unit of account becomes essential. Stablecoins enable:

  • Predictable pricing
  • Capital efficiency
  • Risk management without selling assets

Using voucher tokens as collateral for stablecoins allows users to:

  • access liquidity without exiting staking positions
  • avoid bridging or selling yield-bearing assets
  • keep collateral productive while borrowing

Using voucher tokens as collateral for stablecoins allows users to unlock liquidity without exiting staking positions, avoid unnecessary bridging or asset sales, and keep collateral productive while borrowing. This makes over-collateralised stablecoins a natural extension of liquid staking rather than an unrelated financial primitive.

At this point, the design question becomes how borrowing should be structured to preserve safety while leveraging yield-bearing collateral.

Borrowing Models: A Liquity-Inspired Approach

Over-collateralised borrowing protocols typically follow one of two models: Maker-style vaults or Liquity-style positions.

Liquity’s design emphasises:

  • Conservative collateralization
  • No variable interest rates
  • Explicit user actions for borrowing, repayment, and collateral withdrawal
  • System safety is enforced at every state transition

This approach minimises ambiguity and avoids hidden debt dynamics. It is particularly well-suited for yield-bearing collateral, where predictability and transparency are critical. These principles directly inform how vUSD is structured.

vUSD: A Stablecoin Built on Voucher Tokens

vUSD is an over-collateralised stablecoin designed specifically for the Bifrost ecosystem.

Users lock vTokens (such as vDOT) as collateral and mint vUSD based on a predefined collateralization ratio. For example, at a 150% collateral ratio:

  • $1 of vUSD is backed by at least $1.50 worth of vDOT
  • The system remains solvent even under market volatility

Once minted, vUSD can be used across DeFi, swapped, held, or integrated into other protocols while the underlying collateral continues to earn staking rewards. To understand this more concretely, it helps to walk through a simple lifecycle example.

vUSD Lifecycle Example

  1. Alice stakes DOT and receives vDOT
  2. Alice locks vDOT as collateral and mints vUSD
  3. vUSD enters circulation and can be used across DeFi
  4. Underlying DOT continues to earn staking rewards
  5. When Alice repays vUSD, the stablecoin is burned and collateral is unlocked

Because minting and burning are explicit actions, the vUSD supply expands and contracts strictly through borrowing and repayment. There is no reflexive supply adjustment or algorithmic minting outside user-driven actions.

This lifecycle also sets the stage for how yield is distributed across the system.

Yield Distribution: How vUSD Earns Without Interest

vUSD is yield-backed, not interest-bearing.

Staking yield generated by excess collateral value is shared between:

  • vUSD holders
  • vToken collateral positions

At the minimum collateralization ratio of 150%:

  • Each $1 of vUSD debt controls $2.50 of economic value
  • Yield is split proportionally based on backing value

The yield share for vUSD is defined as:

Yield(vUSD) = vUSD value ÷ (vUSD value + vDOT collateral value)

At minimum collateralization, this results in a 40% yield share.
If collateral prices fall, vUSD’s share is reduced to preserve safety, ensuring yield extraction never weakens collateral backing.

Yield is distributed via rebasing, which increases all vUSD balances proportionally without requiring explicit transfers.

Conclusion

Bifrost’s parachain-native voucher token model enables cross-chain, yield-bearing collateral that remains productive beyond simple staking. vUSD builds on this foundation by introducing a conservative, Liquity-inspired stablecoin designed to unlock stable liquidity while preserving safety and composability.

The current implementation represents a minimal first iteration focused on the core building blocks of the system: voucher-token-backed collateral, explicit borrowing and repayment flows, and a clear over-collateralization model. More advanced components — such as staking yield distribution, liquidation mechanisms, and system-level risk controls — are intentionally not included yet and will be introduced in subsequent iterations.

The full codebase, including the initial contracts, mock voucher tokens, and documented design assumptions, is open-source and available here:
https://github.com/yehia67/vUSD

As the protocol evolves, each major iteration will be accompanied by a follow-up article that documents the new components, design decisions, and trade-offs introduced at that stage. This approach ensures that both the code and the system design evolve transparently, with clear context provided at every step.


vUSD on Bifrost: Building a Stablecoin on Cross-Chain Liquid Staking was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.

Solana Price Prediction: Will $123–$129 Support Hold as Forward’s SOL Stash Hits 7M?

22 January 2026 at 08:31
Solana trades choppy near key $123–$129 support as Forward Industries ramps its SOL treasury and Bitcoin Hyper’s Solana-based Bitcoin L2 fuels a mixed outlook. Solana (SOL) is likely to trade choppy but slightly bid today, with bulls defending the $123–$129 support band…

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