Collateral Architecture

Every DFY stablecoin is backed 1:1 by $1 worth of verifiable on-chain assets, combining liquid USDC reserves for immediate peg operations with shares of underlying stable-yield strategies and RWAs. This dual-backing structure ensures both instant liquidity for market operations and productive yield generation that strengthens the protocol over time. While the liquid reserves enable instant arbitrage operations that capture profits for the protocol, the yield-generating strategies continuously grow the collateral base, creating an ever-strengthening foundation that enhances the protocol’s value-generation capabilities.