Tangent USD (USG) — Pre-Launch Stablecoin

Productive Collateral, Dynamic Rates

Tangent Finance is building USG as an over-collateralized CDP stablecoin that accepts productive DeFi collateral — Curve LP tokens, Pendle PTs, and Stake DAO positions — rather than raw ETH or stablecoins. The peg mechanism borrows from crvUSD’s playbook: instead of relying on redemptions, dynamic interest rates and a rewards deduction rate automatically increase when USG drifts below $1, incentivizing borrowers to repay. A yield-bearing sUSG vault (ERC-4626) lets holders capture protocol earnings passively, while TAN governance token holders direct the DAO and share revenue. The design bets that DeFi-native collateral can be more capital-efficient than traditional CDP models, though it inherits the composability risk of every protocol whose tokens it accepts.

Updated 2026-03-17