Background

Web2 represents the internet's role in facilitating the flow of information, while Web3 signifies the internet's ability to facilitate the flow of value. In Web3, liquidity serves as the essential component, acting as the bandwidth for value transfer. Within this framework, stablecoins play a crucial role as the infrastructure for maintaining liquidity.

In the future, Web3 is expected to witness the flow of trillions of dollars in value, with stablecoins accounting for a significant portion. However, the existing centralized stablecoins possess certain risks, such as vulnerability to censorship and interest rate fluctuations. Despite regular audits, the real-time verification of balance sheets remains elusive, harboring unseen risks. Relying solely on centralized stablecoins poses a significant threat to the overall stability of Web3.

To mitigate these risks and bolster the market value of decentralized stablecoins, Web3 requires the exploration of more decentralized stablecoin protocols. Promising examples include DAI, FRAX, LUSD, and sUSD, which have demonstrated stable operations. By dispersing risks and expanding the market for decentralized stablecoins, Web3 can thrive.

Arvin finance aims to contribute to this cause by creating a decentralized stablecoin lending protocol. This protocol will support a broader range of collateral options, offer lower interest rates, enhance user experience, and ensure a fairer distribution of gains.