RGB++ Layer's First Stablecoin Protocol: An Analysis of Stable++

In the Web3 space, stablecoin systems are the core hub of various DeFi scenarios. For the emerging BTCFi ecosystem, a secure and reliable stablecoin issuance protocol will directly impact the overall structure of the ecosystem. RGB++ Layer, as a second-layer network based on CKB, creates a favorable circulation environment for the stablecoin of the BTCFi ecosystem with its Turing-complete smart contract environment and native account abstraction features.

Stable++ is the first stablecoin protocol in the RGB++ Layer ecosystem, utilizing the CDP( debt collateral position ) mechanism, which allows users to over-collateralize BTC or CKB to mint RUSD stablecoins. The protocol combines the Stability Pool insurance pool and bad debt redistribution mechanism, providing BTC and CKB holders with a reliable stablecoin minting channel. Additionally, combined with CKB's unique inflation model, Stable++ is expected to build an underdamped system within the RGB++ ecosystem, acting as a buffer during significant market fluctuations.

The main functions of Stable++ include:

1. Users can over-collateralize BTC or CKB to borrow RUSD, and can also use RUSD to redeem collateral, with a fee charged during the process.

2. Users can stake RUSD back to the protocol to receive governance token STB as a reward, while also gaining the right to participate in asset liquidation.

3. RUSD supports isomorphic binding and Leap functionality, enabling cross-chain transfers.

4. The LSD section is set up, where NervosDAO users can stake CKB in exchange for wstCKB.

In the design of the clearing mechanism, Stable++ adopts a dual insurance mechanism of "Stability Pool" and "Redistribution" to ensure the efficiency of the clearing process. The Stability Pool acts as a "standing army" ready to clear bad positions at any time, significantly improving the clearing efficiency. When the reserves of the Stability Pool are insufficient, the Redistribution mechanism will proportionally distribute the bad debts among all borrowers.

Stable++ combined with the issuance mechanism of CKB is expected to form a healthy token economy system. When the price of CKB rises, more people will use CKB to collateralize and mint RUSD, indirectly reducing the inflation rate of CKB and increasing on-chain activity. This "under-damped mechanism" helps maintain the stability of the system.

From a market perspective, the BTCFi ecosystem urgently needs a larger-scale decentralized stablecoin. Currently, USDT and USDC account for 90% of the stablecoin market value, but their centralization risks cannot be ignored. There is still great potential for stablecoins based on Bitcoin. With the continuous improvement of the RGB++ Layer ecosystem, the launch of projects like Stable++ will bring new imaginative space to the BTCFi ecosystem, and CKB is expected to become a fertile ground for entrepreneurs.