Indigo Protocol - iUSD

Overview

Indigo Protocol's iUSD is a decentralized stablecoin built on the Cardano blockchain. It's designed to maintain a 1:1 peg with the US Dollar through a collateralized debt position (CDP) system. Users can mint iUSD by depositing ADA as collateral.

Purpose and Utility

The primary purpose of iUSD is to provide a stable medium of exchange and store of value on the Cardano ecosystem. It enables users to avoid cryptocurrency volatility while maintaining exposure to the Cardano network. The protocol also allows users to participate in the DeFi ecosystem on Cardano.

Business Model and Operations

The protocol generates revenue through liquidation fees and stability fees. The system uses smart contracts to maintain collateralization ratios and ensure stability. When collateral values fall below required thresholds, positions can be liquidated to protect the protocol.

Development and Adoption

Indigo Protocol has shown consistent development activity on their GitHub repository. The project has integrated with several Cardano DeFi protocols and maintains regular updates to their platform. While adoption is still in early stages, this is not a concern for Sharia compliance purposes.

Token Distribution

The protocol's governance token (INDY) has a transparent distribution model with defined allocations for development, community incentives, and protocol growth. The iUSD stablecoin itself is fully collateralized by user deposits.