RUSDC-STARK

Relend Network USDC - Starknet addresses the critical issue of stablecoin liquidity shortages across Layer 2s, including the Starknet Ecosystem. It offers a novel solution to the inherent challenges of deploying Collateral Debt Position (CDP)-based stablecoins across multiple blockchain networks, ensuring a balance of security, composability, and resilience. By deploying native stablecoin instances such as rusdc-stark, it significantly enhances Total Value Locked (TVL) in lending protocols, increases capital efficiency, and reduces reliance on complex cross-chain liquidity mechanisms, thereby mitigating contagion risks often associated with unified stablecoin models.

The rusdc-stark token serves as a vital component for providing stablecoin liquidity and credit infrastructure within the Starknet ecosystem. A primary use case for rusdc-stark is enabling lending market risk curators to relend Ethereum mainnet Total Value Locked (TVL) to other chains. Users can mint rUSDC on Ethereum, then bridge it to partner chains like Starknet, where they can access various ecosystem incentives. By deploying rusdc-stark directly into money markets, it stimulates economic activity, enhances capital efficiency for DeFi primitives, and allows users to accrue competitive interest rates through lending.

The peg is enforced through three mechanisms: 1) Arbitrage opportunities when rUSDC trades below $1 allow redeeming via the LPSM for pure profit; 2) Over-collateralization of all minted rUSDC (minimum 130% LTV); 3) The Global PSM's ability to inject USDC into LPSMs during temporary shortages. This hybrid model avoids reliance on centralized reserves while ensuring redeemability.

Unlike bridged assets requiring lock-and-mint mechanisms, rUSDC is natively minted on Starknet against local collateral. This eliminates: 1) Cross-chain security risks; 2) Liquidity fragmentation; 3) Bridge dependency failures. Additionally, rUSDC's borrowing-based issuance expands stablecoin supply reactively to demand, solving capital inefficiency in bridged models.

Yes, integration with Ekubo's AMM enables LP positions in rUSDC/USDC pairs. The inherent price stability creates low-impermanent-loss environments ideal for concentrated liquidity strategies. Vesu's borrowing markets also support recursive yield strategies—using rUSDC as collateral to borrow more rUSDC for leveraged farming.

Three-layer protection exists: 1) LPSM reserves cover initial redemptions; 2) Global PSM acts as secondary backstop; 3) The ERC-7770 standard's reserve ratio parameter automatically pauses new minting when reserves fall below thresholds. Critically, each chain's LPSM is isolated—a Starknet redemption crisis cannot drain Swellchain's reserves.

The token standard internalizes borrowing logic: 1) Interest accrual occurs natively without external contracts; 2) Utilization-based rates adjust supply/demand algorithmically; 3) Reserve ratio enforcement prevents under-collateralization. This architecture reduces attack surfaces by ∼40% compared to separated token/lending contracts while enabling single-transaction borrow/repay flows.