Rumi Protocol has been quietly building something that could redefine decentralised finance on the Internet Computer: the first native, overcollateralised stablecoin. icUSD is designed to unlock ICP liquidity, providing a stable and efficient way to participate in DeFi without selling ICP holdings.
The mechanics are straightforward. Users deposit ICP as collateral, mint icUSD, and gain access to a stable asset that holds a 1:1 peg with the US dollar. This ensures a dependable store of value while allowing ICP holders to make their assets work for them within the ecosystem. The entire process is managed through smart contracts, removing intermediaries and keeping everything transparent and secure.
One of the biggest advantages of icUSD is its ability to provide liquidity without forcing users to sell their ICP. Market volatility often puts holders in a difficult position, but by collateralising their ICP, they can mint stablecoins while maintaining their exposure to the network’s long-term potential. This flexibility makes Rumi Protocol a critical piece of infrastructure for the Internet Computer’s expanding DeFi sector.
Security remains a top priority. A minimum collateral ratio of 150% is required, with liquidation set at 130%. This structure helps prevent instability and ensures icUSD maintains its value. The protocol also implements a small 0.5% fee to keep the system sustainable without making borrowing expensive for users.
Getting started with Rumi Protocol is simple. Users connect their Plug wallet, deposit ICP into a personal vault, and mint icUSD based on the collateral ratio. They can then manage their vault by adding more collateral, borrowing additional icUSD, or repaying to free up their ICP. All interactions are fully verifiable on-chain, ensuring transparency and trust.
icUSD’s impact goes beyond transactions. DeFi ecosystems thrive on lending, staking, and liquidity provision. A stablecoin built natively for the Internet Computer enables seamless integration with other ICP-based applications, reducing reliance on external networks like Ethereum. Lower fees, faster transactions, and better compatibility make it a more efficient option for DeFi participants.
Stablecoins have become essential in crypto, but most existing options are tied to networks like Ethereum or Binance Smart Chain. Rumi Protocol changes this by offering a stable, on-chain asset that aligns with the Internet Computer’s unique architecture. With this, users no longer need to move assets between blockchains or depend on external stablecoins.
The importance of icUSD is clear. A decentralised financial system needs stability to function effectively, and Rumi Protocol provides that missing piece for the Internet Computer. Overcollateralisation ensures resilience even during market fluctuations, protecting users and maintaining the system’s solvency. If a vault’s collateral drops below the liquidation threshold, automated mechanisms step in to stabilise the ecosystem.
This launch sets the stage for a broader DeFi expansion within ICP. With icUSD as a core asset, lending platforms, decentralised exchanges, and financial services can grow around it, increasing liquidity and utility across the ecosystem. As more applications integrate icUSD, it could become the standard stable asset for DeFi on the Internet Computer.
For ICP holders looking to make the most of their assets, Rumi Protocol presents a compelling solution. Instead of selling, they can mint stable liquidity while maintaining their long-term exposure. The arrival of icUSD isn’t just another step in DeFi—it’s a fundamental shift in how stability and liquidity are managed on the Internet Computer.
