Recently, the investment research team has been exploring innovative projects on the SOL chain, abandoning the outdated concept of nested dolls and focusing on recent hot topics such as Payfi, RWA, stablecoins, etc. I actually discovered a quite interesting project, the algorithmic stablecoin project, which is quite interesting. The project currently does not have any coins, and there is no official confirmation of the rumored CA. Please be aware of the risks and safety, and it is only for research and observation purposes. Convergent Protocol (@ convergent_so) wants to create a truly decentralized algorithmic stablecoin called USV on Solana. We all know that centralized players such as USDC and USDT dominate the stablecoin market now. Although it is convenient, there is always a feeling of 'the lifeline is in someone else's hands'. Convergent aims to change this situation and create a more independent, censorship resistant, and community driven stablecoin for the Solana ecosystem. At the same time, it also wants to make your SOL more efficient in generating money. Let's make it easy to understand. After all, algorithmic stablecoins are quite complex: What's up with the stablecoin called USV? The target price is $1: The USV is pegged 1:1 to the US dollar. How to maintain 1 dollar? Relying on algorithmic mechanisms, not centralization: If the USV drops below $1 (such as $0.9), the system will encourage everyone to buy cheaper USVs in the market and then take them back for destruction. By destroying the USV, you can redeem the assets you previously mortgaged at a discounted price. As a result, the supply of USVs decreased and prices rebounded towards $1. If the USV rises by more than $1 (such as $1.1): The system will increase the cost of casting a new USV (such as pledging more things), so people will not want to cast a new USV, and the demand will decrease, and the price will gradually return to $1. The core doesn't rely on USDC, which is quite interesting! This guy emphasized that it does not require centralized assets to maintain stability like FRAX or DAI (which also relied on USDC in the early days). It is dynamically regulated through a set of incentive and punishment mechanisms, which is more pure. The benefits of USV include zero interest loans, over collateralization, and LSD yield on your liquid nature. It does not take any commission, is completely decentralized, resistant to censorship, and can be freely combined like other DeFi LEGO bricks. How do users play? How to make money? Deposit SOL and borrow USV (0 interest): Because of our cooperation with Jito, you can mortgage your SOL (mainly JitoSOL, a profitable SOL) to Convergent Protocol, and then borrow stablecoin USV with 0 interest (I don't know how to do it, is it an early subsidy or something)! Anyway, it smells a bit fragrant. Your SOL is still helping you make money: the SOL you pledged (JitoSOL) will automatically help you obtain Solana's staking income and MEV income. It means your capital is still working. The purpose of USV: The borrowed USV can be used for other DeFi projects in the Solana ecosystem, such as leveraging, forming LPs (liquidity providers), lending, and so on. Nexus system: You can store USVs in this place called Nexus to earn profits from clearing and mine their future governance token CVGT. The future V2 version is even more powerful: looking at the V2 graphics, there is more interaction between users, SOL, and USV. We also introduced something called AMO (Algorithmic Market Operations Controller), which automatically balances prices in the USV/USDC pool when the USV exceeds $1. Users can also pledge CVGT tokens to earn protocol fees. What the hell are AGENTS NFT and FRAGMENTS? AGENTS J (NFT): This is their creation NFT series. Simply put, before the project is officially launched, the project team uses NFTs to attract early core users, establish communities, and connect with valuable investors/DAO organizations. The holder of this NFT may receive airdrops, whitelists, or other benefits in the future. You see, they have also listed many NFT project partners for cooperation. FRAGMENTS: Prior to the official issuance of their token CVGT (TGE), they implemented a points system. How do you earn points? For example, pledging your AGENTS NFT, using their dApp (application), or meeting some (currently not fully public) traceability airdrop conditions. These points will be exchanged for their CVGT tokens in a certain proportion in the future. This is a very common way of early user motivation and community guidance, allowing everyone to participate and contribute in the early stages of the project. Overall, it's quite an interesting project. Decentralized algorithmic stablecoins are one of the holy grails of DeFi, especially in a public blockchain ecosystem where having native and powerful decentralized stablecoins is crucial. The Solana ecosystem does need such a role, let's see if it can be created. It is said to be a direct pumpfun fair launch. Currently, there is no official CA available. Please pay attention to safety and wait for official updates. Any new project has uncertainty, and team execution ability, technical implementation, and market acceptance all need time to be tested. Bosses still need DYOR, don't rush blindly. You can first pay attention to the development of the project, especially the progress of NFT and points system, as well as the actual performance of the final product after its launch. 🧐 Pure research, not extensive.