Minting iUSD with Non-Rebase LSTs

iYU Protocol extends its versatility by allowing users to mint iUSD, a distinctive interest-bearing stablecoin, employing Non-Rebase LSTs like Binance's WBETH, Rocket Pool's rETH, and Swell's swETH (Pending DAO Voting) as collateral. The process mirrors that of Rebase LSTs, offering users the ability to generate interest on their iUSD holdings.

In the iUSD ecosystem, users follow a similar five-stage process:

1. Deposit: Users deposit Non-Rebase LSTs like WBETH, rETH, or swETH.

2. Mint: With a collateral ratio above 150%, users can mint iUSD against their Non-Rebase LST collateral assets with no minting cost.

3. Hold & Earn: iUSD holders earn daily interest with a base APY of ~8%. Similar to the Rebase LST scenario, holders can provide iUSD/3CRV liquidity and continue earning daily interest or convert iUSD to piUSD on the mainnet or supported L2's (Arbitrum) while still receiving the accrued interest upon conversion back.

4. Repay: Users repay their iUSD debt with iUSD.

5. Withdraw: Users can withdraw their collateral at any point, provided their Collateral Ratio remains above the safe CR of at least 150%.

During the Hold & Earn phase, iUSD holders can convert iUSD into piUSD at a 1:1 ratio, preserving their interest on the underlying iUSD. This dynamic feature allows users to earn interest on their stablecoin holdings while actively utilizing them in yield-bearing applications across various DeFi protocols.