Overview

Pi Protocol introduces a modular and capital-efficient dual-token architecture that transforms tokenized real-world assets (RWAs) into stable, liquid, and yield-generating digital assets. Upon collateralization of assets such as U.S. Treasury Bills or Insurance Industry Assets (IIAs), two distinct tokens are minted:

• USP (Utility Stable Pi) – a fully collateralized, USD-pegged stablecoin representing the principal of the deposited asset.

• USI (Utility Stable Interest) – a yield-bearing token implemented as an ERC-1155 NFT, representing the interest or coupon stream from the same asset.

This bifurcation of value enables users to unlock liquidity via USP while retaining yield exposure through USI. The ecosystem is governed and incentivized through a third token, USPi, used for governance, staking, and protocol-level rewards.

By decoupling principal and yield, Pi Protocol empowers users with:

• Full control over their yield and liquidity layers
• A censorship-resistant and decentralized alternative to centralized stablecoins
• Composability with DeFi platforms through the USP token
• Enhanced capital efficiency through the Mint-to-Earn and LAMP (Liquidity and Minting Pool) mechanisms

This architecture creates a distributed financial flywheel, where stablecoin minters become evangelists and liquidity propagators — continuously compounding both adoption and yield.