Treasury-Backed Stability
Pi Protocol’s yield system is fundamentally different from speculative or inflation-based DeFi protocols. The yield that supports the ecosystem—and backs the USP stablecoin—is generated directly from high-quality, real-world financial assets.
When users deposit assets like Treasury Bills or insurance receivables into Pi Protocol, those assets continue to earn interest or fixed payments. This interest becomes the basis for real, predictable yield within the system. Because these assets have fixed maturity dates and clear repayment terms, the yield they generate is stable and enforceable.
This stability matters. It ensures that USP is not just pegged to $1 through arbitrage or token mechanics—but is backed by collateral that itself generates income. The result is a system where the peg is secured by actual cash flow, not synthetic incentive loops.