StableCore Auto-Redemption: Your Smart Vault Just Got Smarter

In the ever-evolving world of DeFi, stablecoins power everything from yield farming to zero-interest borrowing. Yet even the most robust stablecoins can occasionally drift from their target price. Today, we're excited to introduce StableCore Auto-redemption - a feature that not only maintains USDs stability but turns price dips into savings opportunities for our users.

Turning Market Movements into User Benefits

Imagine you're shopping at your favorite store and notice everything is suddenly 5% off. You'd probably take advantage of that discount, right? That's exactly what StableCore does for your Smart Vault debt, but entirely automatically. When USDs trades below its target price of $1, your vault springs into action, using a portion of your collateral to capture this discount and reduce your debt.

Let's see how this works in practice through Alice's story:

Alice maintains a Smart Vault with 500,000 USDs borrowed, backed by $1,000,000 in ETH and WBTC collateral. During a market swing, USDs dips to $0.95. StableCore's automation kicks in, calculating that it needs 100,000 USDs worth of buy pressure to help restore the peg. The protocol purchases these USDs at $0.95 each, spending just $95,000 of Alice's collateral to pay off $100,000 of her debt. The result? Alice saves $5,000 instantly, keeps more of her collateral, and still has 400,000 USDs in outstanding debt - all while helping stabilize USDs price. Everyone wins.

The Power of Priority

One of StableCore's most innovative aspects is its priority system. We've implemented a "largest-first" approach that gives bigger vaults priority access to these savings opportunities. Why? Because when larger vaults participate in auto-redemption, they have a more significant impact on stabilizing USDs price, benefiting everyone in the ecosystem.

Think of it like a loyalty program that actually makes sense: the more you borrow, the better your position in line when these savings opportunities appear. A vault with 100,000 USDs in debt could save $5,000 when USDs trades at $0.95, while maintaining priority access to these opportunities over smaller vaults.

Behind the Scenes: Chainlink Automation at Work

At the heart of StableCore's reliability lies our integration with Chainlink Automation. This sophisticated system never sleeps, constantly monitoring USDs price feeds and triggering the auto-redemption process precisely when conditions are right. Here's the sequence:

1. USDs trades below $1
2. Chainlink monitors the price and initiates auto-redemption if it stays under $1 for a set duration
3. StableCore identifies eligible vaults, prioritizing larger debt positions
4. The protocol executes the redemption, buying discounted USDs to repay debt
5. Buy pressure helps restore the peg while vault owners save money

Every step happens automatically and transparently on-chain, requiring no user intervention.

A Feature That Works While You Sleep

The beauty of StableCore is its hands-free operation. Your collateral remains safely in your vault until an opportunity arises, and you can monitor all savings through an intuitive interface. Whether you're holding ETH looking for passive returns, a WBTC enthusiast seeking leverage, or a DeFi user exploring yield strategies, StableCore works tirelessly to find savings opportunities.

Plus, you continue enjoying all the benefits that make TheStandard unique:

• Zero-interest borrowing
• Yield generation on collateral through supported Liquidity Pools
• Complete collateral flexibility
• Automatic debt reduction opportunities

Join the Future of Smart Debt Management

StableCore represents more than just an upgrade - it's a fundamental shift in how protocols can align stability mechanisms with user benefits. No more choosing between protocol health and user advantage; StableCore delivers both.

Ready to let your Smart Vault work smarter for you? Whether you're opening a new vault or expanding an existing one, StableCore's auto-redemption feature stands ready to help reduce your debt costs automatically. The larger your vault, the better your chances of capturing these automatic savings.

Remember, in DeFi, innovation never sleeps - and now, neither does your Smart Vault's ability to save you money. Welcome to the future of automated debt management with TheStandard's StableCore.

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