iAUSD Use Cases
There are several use case for the iAUSD stablecoin depending on the user profile
Halal yield on cash holdings
Risk averse investors can hold iAUSD as a low-risk, stable and liquid investment. iAUSD receives halal yield from the underlying productive staking operations. iAUSD is expected to generate between 4-6% APY (based on the current 7-10% SOL staking yield).
Low-risk yield on company treasuries
Companies, specifically startups, often hold a significant cash treasury after the conclusion of a fundraising round. Investing a small percentage of the startup treasury in liquid low-risk investments is a common practice. iAUSD is an ideal candidate in this category.
Paying real-life expenses without selling assets
It's common to see crypto investors forced to sell their crypto investments to cover real-life expenses such as mortgages, car payments, medical bills etc. iAUSD is a great solution in these scenarios. Users can mint iAUSD against their SOL holdings, use it to cover the immediate cash needs and pay it back when they are able to do so. iAUSD is ideal because loan repayment = loan taken. There is no interest or fees involved
Halal leverage Many investors seek increased exposure to the assets they strongly believe in. Existing leverage protocols charge excessive interest to allow leverage. iAUSD is an excellent way to perform halal leverage. Users can mint iAUSD by providing SOL collateral. The iAUSD can be used to purchase additional SOL, e.g., looping, or any other asset in the open market.
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