Stable

This page covers the Stable, a financial infrastructure builder

Stable erases the line between assets and liquidity by minting a stablecoin (USDS) against real estate equity, allowing owners to spend or lend their liquidity.

$USDS and $USDW, USD-pegged stablecoins, are the flagship products of Stable. Both coins are backed by a strong set of assets including US Treasuries, mortgages, and liens.

This page is accurate as of August 2024, for the latest on Stable, please check out these docs.

USDS

USDS is a USD-pegged stablecoin that is lent against real assets like single family homes or other US, UK, and EU-based properties. Owners can borrow against the value of their property.

How Does USDS Work?

USDS is minted against the US Dollar value of real estate assets. Anyone with a mortgage or equity in a US, UK, or EU based property can create a Stable Account. Once a Stable Account has been made, USDS can be minted against the value of assets held by that Account.

• A home or CRE property is represented onchain via an appraisal

  • Or via an existing mortgage (within 3 years)

    • ZK proofs are used to prove the value of each property

• USDS stablecoins are minted in a set amount of the USD value of the property

  • Maximum 80% LTV (liquidity-to-value)

• USDS can be borrowed by the owner

  • Or lent to other borrowers

• Interest and repayment is made on borrowed USDS

  • Mortgage and other loans are liquidated to Fannie Mae or Freddie Mac where applicable

  • Cash from repayment / payments is used to add additional backing to USDS

    • If the repayment schedule is not met, legal action ensues according to local law

Why Consumers Love Stable

The average monthly payment on a new 30-year mortgage issued in the United States has increased by 84% over the last 5 years. Depending on your source, the median purchase price of a US home is now $420,000 to $490,000, and the median monthly mortgage payment is $2,100 to $2,900.

So the house that was $1,100 a month is now $2,100. That's a hard gap to fill for a lot of people...

Not only is housing becoming more expensive, the cost of borrowing cash to purchase housing has risen so much over the past few years that the current decline to 15-month low mortgage rates is over 200% higher than the 36 month low. This further increases the price of housing each year.

Stable dials back this detrimental inflation and saves the average US household up to $1,000 per month on those payments by offering loans that start at 4% APR. Stable is able to offer those rates by minting USDS against the US Dollar amount of the mortgage loan.

USDW

USDW is a USD-pegged stablecoin backed by US Treasuries.

USDW can be minted by depositing dollars or a number of crypto assets including BTC and ETH.