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What is Lista DAO (lisUSD)?

Lista DAO is a decentralized over-collateralized lending and liquid staking platform on the BNB chain. lisUSD is the protocol’s native destablecoin over-collateralized by BNB and is redeemable for US $1 worth of BNB. Its use cases include borrowing lisUSD at a collateral ratio ~152% (~66% LTV) by depositing BNB, ETH, slisBNB or wBETH as collateral on the protocol, liquidity mining on LP DEXes, a means of payment to transfer value for goods & services. The protocol aims to be completely decentralized, and will be launching its DAO once the TGE of its governance token, LISTA, is completed.

The core goal of Lista DAO is to provide a new form of digital currency (lisUSD) that is capital efficient and decentralized.

What Makes lisUSD Unique?

lisUSD is unique as it is backed by BNB and ETH, which is amongst the top L1 tokens by market capitalization in crypto. In addition, HAY offers similar elements of value (both redeemable for US $1 worth of cryptocurrency) and decentralization as predecessors such as MakerDAO, while improving on gaps such as capital efficiency and financial rewards offered, allowing users to enjoy sustainable returns on their borrowed lisUSD.

How is risk managed at Lista DAO?

Risk management and user protection is a core focus at Lista DAO, and thus, multiple risk management procedures are in place. Firstly, a LTV ratio of 66% is used to ensure that there is sufficient over-collateralization of BNB to tide over a black swan event. The LTV ratio of 66% is also referenced from what is used at MakerDAO, which suggests that it is an optimal, battle-tested LTV ratio.

Secondly, users can opt to subscribe to Helio’s personalized Liquidation Alert System (LAS), which allows users to be notified via telegram when the liquidation threshold is approaching, allowing them sufficient time to react accordingly. Users who subscribe will also be notified when the collateral price is experiencing abnormal levels of volatility, and is approaching liquidation price.

Lastly, Lista DAO has employed an emergency shutdown mechanism that is smart-contract regulated, and will be triggered in the event of a “black swan” event. The shutdown process will be used as a last resort to prevent attackers from attacking Helio Protocol’s blockchain infrastructure.