Frequently quacked questions about USDP
What's the use case of USDP?
Deposit your collateral, mint USDP, swap it for other stablecoins, stake it.
Why should I mint USDP if I already have other tokens?
You can get liquidity without having to sell your collateral.
Where can I swap USDP for other stablecoins?
So, I can buy more crypto, and then use it to mint more, and then buy more, then mint more, then buy more again? Mint, buy, mint, buy, mint, buy?
Why is USDP called USDP? What’s with the P?
It stands for ‘Pay’, a nod to Unit Protocol’s original name – The PayCash
So, I’ve deposited my collateral (ANY), and minted my USDP. I set the liquidation price at $1 (ANY’s price is $2.90). So, I need to keep an eye on the price of ANY. If it gets close to $1, then I should pay back the borrowed USDP and then I’ll be able to withdraw my collateral for no penalties. Right? And if I don’t do that, I’ll lose 15% of my collateral. Right?!
If I withdraw the max collateral that I’m allowed, what does that bring the health factor to?
Somewhere around 1.03. That's risky, because when it reaches 1, you will be liquidated.