Decentralized Stablecoin (DSC) is a fully decentralized, algorithmic stablecoin system pegged to USD, backed by WETH and WBTC collateral. This innovative project offers a trustless and transparent solution for stablecoin enthusiasts. Unlike centralized stablecoins like USDT and USDC, DSC operates without a central authority, ensuring that no single entity controls your funds. All operations are conducted on-chain, providing a censorship-resistant environment where no one can freeze your DSC. The system is overcollateralized, always backed by more than 100% collateral, ensuring stability and security.

Key Features

• Trustless: No central party controls your funds.

• Transparent: All operations are on-chain.

• Censorship-resistant: No one can freeze your DSC.

• Overcollateralized: Always backed by >100% collateral.

How It Works

The user journey involves depositing collateral, minting DSC against it, and repaying to withdraw. For example, a user can deposit 1 ETH, mint up to $1000 DSC with a 200% collateral ratio, and maintain a safe health factor.

Security and Architecture

The protocol uses Chainlink price feeds with staleness checks to prevent attacks using outdated prices. The architecture includes core contracts like DSCEngine.sol for collateral management and DecentralizedStableCoin.sol for ERC20 token operations.