Piggy $PIGGY

Piggy is a unique decentralized borrowing protocol offering interest-free loans which are efficiently collateralized and backed by $BNB. Setting itself apart from other DeFi lending platforms, Piggy operates using a Stability Pool mechanism for liquidations instead of the traditional auction method. This approach results in superior capital efficiency, allowing for loans with minimum collateral ratios as low as 110%.

Piggy's Loan System and Stablecoin

Loans provided by Piggy are drawn in $PUSD, a stablecoin pegged to the dollar. Users, whether borrowers or not, can deposit $PUSD in the Stability Pool and become Stability Providers, earning $PIGGY rewards in the process. While participating in the Stability Pool, users may notice their $PUSD balances gradually decreasing, but their $BNB (and $PIGGY) balances increasing. This shift results from Stability Providers receiving pro-rata shares of $BNB when liquidations occur, and a constant influx of $PIGGY rewards.

The Role of $PIGGY Token

$PIGGY serves as the secondary token of the Piggy protocol. Users can stake their $PIGGY tokens to receive a portion of the protocol fees derived from loan originations and $PUSD redemptions. Over time, following the principles of steady and structured decentralization, $PIGGY will also be used for participation in the protocol's governance-minimized decentralized autonomous organization (DAO). This will allow $PIGGY holders to vote on important matters such as Upgrades, Treasury policies, and Contributor grants.