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Summary of Orca AVAI
- AVAI is a USD-pegged asset, aiming to maintain a value of $1.00 USD.
- Backed by collateral in a personal Vault in an Orca Bank and other mechanisms.
- Decentralized process, no middleman, user has full control of funds.
- Example: Deposit $150 USD collateral, borrow up to 100 AVAI ($100 USD), invest $250 USD, owe $100 USD.
- Numbers: $1.00 USD, $150 USD, $100 USD, $250 USD, 100 AVAI
About Orca AVAI: Empowering the Future of Digital Assets
AVAI is a dollar-pegged asset, designed to maintain a stable value of approximately $1.00 USD. This stability is ensured by collateralizing tokens in a personal Vault within Orca Bank, as well as through additional mechanisms outlined in the technical overview.
The entire process operates on a decentralized framework, eliminating the need for intermediaries such as financial institutions, thereby empowering users with complete control over their funds at all times. An Orca Bank constitutes a smart contract that enables users to deposit a specific ERC20 token as collateral, in exchange for AVAI tokens. For instance, if a user deposits $150 USD worth of collateral funds into a Vault using the USDC token, they will be eligible to borrow up to 100 AVAI tokens, valued at $100 USD. This, in turn, presents an opportunity for users to invest a total of $250 USD, while being liable for a stable debt of $100 USD.