Stark-Fi Mint & USFI Stablecoin
Discover the Stark-FI stablecoin USFI and how it's working
Last updated
Discover the Stark-FI stablecoin USFI and how it's working
Last updated
Stark-Fi Mint is the core stablecoin issuance mechanism within the Stark-Fi ecosystem. It allows users to mint USFI, a decentralized, overcollateralized stablecoin, by locking up supported crypto assets as collateral.
USFI is designed to maintain a 1:1 USD peg through a combination of algorithmic stability mechanisms, collateral backing, and user incentives.
By utilizing Stark-Fi Mint, users can access liquidity without selling their assets, making it a capital-efficient way to borrow against crypto holdings.
Minting USFI through Stark-Fi provides several advantages compared to traditional lending and stablecoin issuance platforms :
Controlled Interest Rate – Unlike traditional lending protocols with unpredictable or compounding interest, Stark-Fi implements a managed interest rate model that ensures borrowing costs remain stable and predictable.
Retain Exposure to Crypto – By minting USFI instead of selling assets, users can maintain their exposure to ETH, BTC, and STRK while still accessing liquidity.
Decentralized & Non-Custodial – Stark-Fi is fully decentralized and built on StarkNet, ensuring self-sovereign finance without relying on intermediaries.
Efficient Collateralization – Users can leverage multiple assets (ETH, BTC, STRK) as collateral while benefiting from liquid staking integrations to enhance yield opportunities.
Algorithmic Stability – The system is designed to maintain USFI’s peg through dynamic fees, , and mechanisms.
Collateral is the crypto asset that users lock into Stark-Fi Mint to secure their USFI loans. It acts as security for the system, ensuring that every USFI minted is backed by real assets.
If the collateral value drops too much, the LTV Ratio will rise too much (higher the ), the position may be liquidated to maintain system stability.
Stark-Fi supports multiple collateral types, including both native and liquid staking derivatives:
Ethereum (ETH) & Liquid ETH (wstETH, rETH)
StarkNet Token (STRK) & Liquid STRK (if supported by third-party protocols)
Bitcoin (WBTC)
By supporting liquid staking tokens, Stark-Fi enables users to earn staking yield while using their assets as collateral—enhancing capital efficiency.
Yes, the minimum debt requirement to mint USFI is 200 USD.
This ensures :
Efficient system operation by preventing excessive fragmentation of debt positions.
Reducing blockchain congestion by limiting microtransactions that could burden smart contracts.
Users must maintain a minimum debt of 200 USFI when using Stark-Fi Mint.
Minting USFI is a straightforward process :
Deposit Collateral – Choose from ETH, BTC, STRK, or liquid staking tokens and deposit them into Stark-Fi Mint.
Determine Collateral Ratio – Ensure your collateral-to-debt ratio is above the Minimum Collateral Ratio to avoid liquidation.
Mint USFI – Based on the deposited collateral, mint up to your available limit.
Use USFI Freely – The minted USFI can be traded, used in DeFi protocols, or redeemed later.
Repay Debt to Unlock Collateral – When ready, users can repay their USFI to retrieve their collateral.
Stark-Fi uses a transparent and dynamic fee structure :
Minting Fee – A one-time fee applied when minting USFI. This fee fluctuates based on system demand to help maintain the USFI peg.
Redemption Fee – When redeeming USFI for its underlying collateral, a dynamic redemption fee applies, preventing arbitrage exploitation.
Liquidation Penalty – If a Trove is liquidated, a penalty fee is applied, ensuring that Stability Providers benefit while discouraging undercollateralization.
Withdrawal Fees – Some withdrawals may incur a small network fee, depending on congestion and smart contract execution costs.
Borrowing Interest – decided by the user and restributed to stability pool depositor and protocol incentives
Users must always ensure their remains healthy to avoid liquidation.
