What is ISSUAA?
The ISSUAA protocol is designed to tokenize real-world and crypto assets on a public blockchain, such as stocks or stock indices, commodities, or crypto assets. There is no need to trust any centralized middleman because the protocol is completely decentralized — not only in its decentralized finance technology but also in its DAO governance. For the sake of high speed and low cost transactions, the ISSUAA protocol is live on Polygon mainnet.
The ISSUAA protocol is based on the principle of always issuing synthetic assets as a pair. The user will escrow a fiat pegged stable coin (USDC) when minting new ISSUAA assets. In exchange, the user will receive a pair of synthetic assets: a long token that mimics the underlying asset’s value and price, as well as a short token that mirrors the same underlying asset’s price development inversely. This means that if the price of the underlying asset rises by one dollar, the long token will rise in value by one dollar, while the short token will fall in value by one dollar. The change in the value of the two assets combined does thus not change. The underlying assets will thus remain fully funded, no matter in which direction the underlying asset’s price develops.
The ISSUAA long and short token principle especially opens a new opportunity for liquidity providers on the platform, as the favorable risk charachteristics also come into place when providing liquidity in the long and short pools of an underlying asset at the same time; hence enabling capital efficient (no overcollateralization) and comparably very low risk yield farming for investors engaging as Liquidity providers in the AMM pools of the ISSUAA protocol.
On top of this, investors acting as liquidity providers and governance voters as ISSUAA DAO participants are rewarded weekly with the ISSUAA Protocols´ governance token IPT which itself is value bearing as it is linked to the cash flows of the ISSUAA marketplace — find out and connect your metamask with app.issuaa.org.