USDso

USDso

USDso is Somnia's ecosystem stablecoin, issued and operated by Frax on GENIUS-compatible frxUSD infrastructure. It is the quote and settlement asset for markets on Somnia, and reserve yield is routed to the protocols that hold its liquidity.

A settlement asset that pays the ecosystem.

Why USDso

Settle every market in one asset

USDso is the quote asset for spot markets on Somnia Markets and the settlement asset for event contracts, so balances move between markets without conversion.

Fund zero-fee markets

Reserve yield routed to protocols pays market makers for quoting near the top of the book, which is how a venue can run without trading fees.

Rely on an established issuer

Frax issues and operates USDso on its frxUSD infrastructure, designed to be compatible with the GENIUS Act framework.

How USDso yield reaches the ecosystem

  1. Mint. USDso is minted one to one against approved stablecoins through Frax.
  2. Reserve. Frax holds and manages reserves on its frxUSD infrastructure.
  3. Measure. Liquidity held by approved Somnia protocols is measured by time-weighted average.
  4. Allocate. 90% of reserve yield goes to those protocols and 10% to an insurance fund.

Capabilities

  • Issued by Frax. Operated on GENIUS-compatible frxUSD infrastructure.
  • Ecosystem quote asset. The base pair for spot markets on Somnia Markets.
  • Event-contract settlement. Winning outcomes redeem for one USDso each.
  • Yield Allocation Framework. Reserve yield routed to the protocols that provide liquidity.
  • Insurance fund. A tenth of reserve yield builds a dedicated insurance fund.
  • Lending support. USDso can be supplied on Somnia Lend, Somnia's credit market.

Further reading

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