optistable

OptiStable is a full stack, multi-chain protocol that allows anyone to insure a stablecoin against depegging, and gives people providing collateral against a depeg the ability to earn by collecting premiums.

The protocol is built on three key features:

1. A complex oracle service built on a custom OP Stack that aggregates price data from multiple sources, including from Layer 1, other chains, and from web2.
2. A series of contracts that manage policies, payouts, and a committee , and that gives people the ability to trade an ERC20 token representing their position with others.
3. A front end that allows people to buy and sell policies, and that renders policies and price data in real time from the contract backend.

OptiStable is an innovative full-stack, multi-chain protocol designed to revolutionize the way stablecoins are insured against depegging. By combining advanced oracle technology, smart contract management, and a user-friendly front end, OptiStable empowers users to protect their stablecoin investments while offering opportunities to earn through collateral provision and premium collection.

Key Features:

Custom Oracle Service: OptiStable's foundation is built upon a sophisticated oracle service known as the OP Stack. This oracle aggregates data from diverse sources, including Layer 1 platforms, other blockchain networks, and web2 data providers. By obtaining comprehensive price data, the protocol ensures accurate and reliable information for assessing stablecoin stability.

Policy Management Contracts: The protocol's suite of smart contracts facilitates the management of policies, payouts, and a dedicated committee. Users can seamlessly trade an ERC20 token representing their policy position, providing a secure and efficient trading environment.

User-Friendly Front End: OptiStable boasts an intuitive front-end interface that simplifies the process of buying, selling, and managing policies. Real-time rendering of policies and price data directly from the contract backend ensures a seamless user experience.

Policy Lifecycle:

Subscription Phase: During this phase, users have the opportunity to subscribe to upcoming policies. They can insure stablecoins or provide collateral for specific currency pairs, such as USDC/USDT. The protocol allows users to customize their risk exposure while contributing to the ecosystem's stability.

Active Monitoring: Once a policy is active, the oracle committee diligently monitors the underlying stablecoin's peg. This continuous surveillance helps detect any deviations from the peg and triggers necessary actions if a depeg event is identified.

Closure Phase: The policy's final phase involves closure, which occurs at a designated L1 block. Closure can be triggered by either a majority of price sources reporting a depeg or the policy reaching its expiration date.

iUSDC Tokens: A unique aspect of OptiStable is the introduction of iUSDC tokens. These ERC20 tokens, minted and distributed upon policy activation, represent users' positions within a policy. When a policy closes, iUSDC tokens can be burned to claim the insured stablecoin or the collateral stablecoin, depending on the policy outcome.

Oracle Committee and Cross-Chain Interactions: The heart of OptiStable lies within its oracle committee, a critical component powered by the custom oracle service based on the OP Stack. This committee fetches price data from various sources, including established Layer 1 platforms like Chainlink, emerging low-latency oracles like Redstone, web2 providers like CoinGecko, and even other blockchain networks. These cross-chain interactions enhance OptiStable's reliability and potential.

Conclusion: OptiStable is more than just a protocol; it's a dynamic ecosystem that empowers users to safeguard their stablecoin investments while contributing to the stability of the entire network. By leveraging cutting-edge technology, OptiStable paves the way for a new era of decentralized insurance and premium earning opportunities.