Pi Protocol: An Innovative Attempt at Yield-Bearing Stablecoins

Pi Protocol is an emerging stablecoin protocol aimed at challenging the existing stablecoin market through innovative yield-bearing designs. Its core product is the USP stablecoin.

With the election of US President Trump, the stablecoin sector has seen a boom. Within days of taking office, Trump issued an executive order to promote the adoption of dollar-backed stablecoins, while Congress is drafting a bill to provide a regulatory framework for stablecoins in the US. Major financial companies like PayPal and numerous crypto enterprises are issuing stablecoins.

Recently, according to a Bloomberg report, Reeve Collins, one of the original co-founders of Tether, is launching a yield-bearing stablecoin project called Pi Protocol, which will provide holders with potential earnings from tokenized real-world assets.

According to the Pi Protocol official X platform, Pi was originally named TreasuryX and was officially established last year, recently undergoing a complete rebranding and repositioning. Pi plans to launch its first yield-bearing stablecoin, USP, on Ethereum or Solana in the second half of 2023.

Innovative Attempts at Yield-Bearing Stablecoins

Pi Protocol is an emerging stablecoin protocol that aims to disrupt the existing stablecoin market with innovative yield-bearing designs. Its core product is the USP stablecoin, which differs from traditional stablecoins like USDT and USDC in that the asset earnings are directly distributed to USP holders via the USI token, whereas issuers of USDT and USDC currently retain these earnings. This model not only attracts yield-sensitive users but may also drive the transition of stablecoins from mere "value anchoring tools" to "investment tools."

Pi Protocol plans to operate on the Ethereum and Solana blockchains, utilizing smart contracts to ensure efficient transactions and ecological compatibility. Additionally, the project will introduce governance tokens, allowing the community to participate in the decision-making process, enhancing the transparency and engagement of decentralized governance.

Specifically, Pi will use smart contracts to assess the value of collateral and execute over-collateralization rates, minting its USP stablecoin. As a reward, minters will receive another token, USI, as earnings.

Pi will be governed by the governance token USPi, whose holders will benefit from platform revenues derived from minting stablecoins and other sources. Users of this token will be able to vote on decisions such as setting risk parameters, adjusting collateral policies, and distributing protocol revenues. The team and advisors will receive 25% of the governance token supply. It is reported that the team is conducting a presale of the governance tokens.

Founder Collins himself stated, "Pi Protocol is the evolution of stablecoins."

Team Introduction

Reeve Collins is the founder and chairman of Pi Protocol, and he is a serial entrepreneur in the crypto space. He co-founded Tether in 2013 and served as its first CEO until 2015. Collins is also one of the inventors of stablecoins; during his tenure at Tether, he publicly collaborated with co-founders Brock Pierce and Craig Sellars on innovations related to stablecoins.

After leaving Tether, he founded BLOCKv (focused on NFT platforms, which raised $22 million in an ICO in 2017), SmartMedia Technologies (an enterprise-level Web3 platform), and the decentralized currency market protocol WeFi.

Bundeep Singh Rangar is the CEO of Pi Protocol, having previously founded the TradFi network InsurTech and worked on the listing of the first DeFi ETP.

Roadmap

According to publicly available official information, Pi Protocol's future plans include the following aspects: