With the protocol nearing deployment, the **Community Liquidity Bootstrapping (CLB) event is set to begin on November 25th**, allowing users to contribute liquidity and earn CLB tokens ahead of the full launch.

At a high level, USE focuses on:
- Simple everyday use on Ergo.
- Clear, predictable rules in smart contracts.
- Good pairing with other assets, including bridged stablecoins such as USDT.

USE is built on the same Dexy framework that powers DexyGold, which already runs on Ergo mainnet and tracks the gold price through oracles and smart contracts.

## How the Design Works

USE uses a simple structure that many DeFi users will recognise.

1. **The Bank contract**
- The Bank holds ERG reserves and uses an ERG/USD oracle.
- Users can send ERG to the Bank and mint USE at the oracle price, plus a small fee.
- The Bank can use its ERG reserves to buy USE when the price is weak, or sell USE when the price is high.
- The Bank controls when new USE is created and how reserves move.

2. **The Liquidity Pool (LP)**
- The LP is a trading pool on Ergo DEXs that holds ERG and USE.
- Traders swap ERG and USE, similar to a Uniswap v2 style pool.
- The pool price moves with supply and demand.
- Safety rules can limit some actions if the pool price drifts far from the oracle price, which protects reserves in obvious stress events.

3. **Arbitrage keeps the price close to 1 USD**

Arbitrage traders compare the oracle price, the LP price, and the Bank minting price.
- If USE trades above 1 USD, they can mint at the Bank and sell into the LP.
- If USE trades below 1 USD, they can buy from the LP and benefit when conditions normalise.

This profit loop keeps the price close to the target without a central controller that can freeze balances.

## Key Parameters and Safety (Planned Launch Setup)

The team treats the following as the planned initial configuration for launch. Parameters can still change based on testing and simulations.

- **Token and fees:** USE uses 6 decimals (like USDT/USDC). Fees aim to be low, targeting 0.1% for bridge routes and ~0.05% for core stable-swap markets.
- **Governance:** A 3-of-5 multisig committee will initially adjust parameters, with a plan to burn keys or transition to a DAO structure after roughly 6 months.
- **Free Minting**: Allowed when the peg is healthy and reserves are comfortable. Capped at 1% of LP size every 360 blocks (~12 hours).
- **Arbitrage Minting:** Activates if USE trades above ~$1.01 for ~1 hour.
- Interventions: The Bank can buy/sell USE in the LP (max 2% slippage) to support the peg, with a minimum delay between actions.
- **Payouts**: If reserves become very high (well above 100% collateral), the protocol can pay out a maximum of 0.5% of reserves per week, prioritizing long-term solvency.

“Extract-to-the-Future” (Under Review)

The team is reviewing a last-resort feature where, during extreme stress, the system could pull USE from the LP to lift prices. Users would be able to return that extracted USE once conditions improve. This may or may not be active at launch depending on final testing.

## Launch Details: The CLB Event

The launch quality of USE depends on starting liquidity. To achieve this, the project is hosting a **Community Liquidity Bootstrapping (CLB) event**.

### Event Timeline
- **Phase 1 (Contribution)**: Nov 25 (19:00 UTC) – Nov 28 (19:00 UTC)
- **Phase 2 (Minting)**: Nov 28 – Dec 1
- **Phase 3 (Airdrop**): Starts Dec 1 (19:00 UTC)

## How it Works

Instead of a traditional sale, users contribute liquidity to bootstrap the protocol.

1. **Contribution**: Users can contribute **ERG** (on Ergo) or **rsERG** (bridged ERG on Cardano).
2. **Liquidity Lock**: All contributed funds are paired to create the initial USE/ERG liquidity pool. The LP tokens for this pool are **locked for 2 years** in a smart contract.
3. **The CLB Token**: Contributors receive **CLB tokens**. These are liquid, tradeable tokens that represent your share of the locked liquidity pool plus the accumulated trading fees (0.3% fee tier) generated over the 2-year period.
4. **Incentives**: In addition to the CLB tokens, participants will share a bonus airdrop pool of **200,000 DORT** (Oracle reward token) and **125,000 MEW** (Mew Finance token).

**Important Note**: Do not send funds from an exchange. You must use a non-custodial wallet (like Nautilus or Ergo Wallet App) to receive your CLB and airdrops.

For full participation details, step-by-step guides, and disclaimer, please read the official launch article by Richi TP:

👉 USE — [Launch Event Details](https://medium.com/@manastaking/use-launch-event-details-4957d1db1dac?postPublishedType=repub)

## Community & Resources

**X Spaces Recording**: [Vision, design, and launch event](https://x.com/i/spaces/1djGXWAOaXdKZ)
**Telegram:** [t.me/USE_stablecoin](https://t.me/USE_stablecoin)
**Dexy Protocol Reference**: [Dexy stablecoin framework on Ergo Forum](https://www.google.com/search?q=https://www.ergoforum.org/t/dexy-gold-design/3835)
**Dexy**:[ A Seigniorage-Based Stablecoin](https://docs.ergoplatform.com/eco/dexy/)

_This article is an overview. Final launch docs and on-chain contracts will determine the exact rules of the system._


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USE (Universal Stablecoin for Ergo) is a planned USD-linked stablecoin on Ergo. It aims to give the ecosystem a simple dollar unit for trading, saving, and cross-chain activity, while keeping the rules transparent on-chain and the base protocol safe.

Ecosystem Spotlight: USE, a Universal Stablecoin for Ergo

Rosen Bridge has entered the final phase for its [Bitcoin Runes integration](https://ergoplatform.org/en/blog/Bitcoin-Runes-Rosen-Bridge-A-Practical-Path-for-Multi-Chain-Fungible-Assets/). You can now set up your Bitcoin-Runes watcher. The collateral requirement for the Bitcoin-Runes network has changed. You need to lock 50K RSN and 10 ERG as collateral to run a Bitcoin-Runes watcher. You can find the latest configuration documentation [here](https://github.com/rosen-bridge/operation/blob/dev/docs/watcher/deploy-docker.md#bitcoin-runes-config-just-for-bitcoin-runes-watchers). 

This update matters for anyone trading or building on Ergo. Runes are Bitcoin’s native fungible asset standard. Integrating them into Rosen means that tokens minted on Bitcoin can move across chains through Ergo, Cardano, and others already linked through the bridge. That makes Rosen one of the first working paths between Bitcoin Runes and UTXO-based DeFi.

## Current Status

The Rosen team has successfully moved beyond the testing phase and executed the on-chain creation of the necessary assets. **Rune balance**s destined for the bridge are now minted and live on Bitcoin.

The team has established the ```•ROSEN•TECH```  namespace, creating Runes that represent a wide variety of external assets. This includes major liquidity tokens like **ETH, BNB, ADA**, and **DOGE**, as well as ecosystem-specific assets like **RSN, Paideia**, and the **SigmaUSD** stablecoin (```•SIGMA•ROSEN•TECH```). These newly created balances act as the foundational liquidity layer on Bitcoin, signaling that the infrastructure is now primed to facilitate the actual bridging and swapping of these tokens across networks.

As of November 22nd, the Runes+ bridge is ready to launch and watchers are invited to get set-up.

⚠️ _Please Note:  This release is not limited to Bitcoin-Runes operators – all watcher operators must update their images as soon as possible!_

## Technical Progress
- Several core systems were upgraded for this milestone.
- The legacy P2P layer has been replaced with Rosenet, improving message routing and reducing load.
- A new Ergo Multisig package now handles key coordination and validation logic on the code level.
- All major services moved to Node v22.18 to align with current runtime standards.
- And the obvious step, the Bitcoin Runes chain is now part of the network list.

Alongside these, Rosen is introducing an **On-Chain Token Map**. Until now, supported assets were defined in a JSON file shared among watchers and guards. Every token update required manual synchronisation. The new model stores supported token data directly on-chain, so bridge participants can fetch verified configs straight from Ergo boxes. This change removes manual delays and adds transparency to how assets become bridge-eligible.

The migration is happening in two stages. The first updated TokenMap structures to recognise configs stored on-chain. The second, now in motion, shifts live services to read from blockchain data rather than local files. UI applications are the first to adopt the change, followed by guard and watcher services.

## Meaning in Practice

The Runes integration turns Ergo into a route for Bitcoin-denominated tokens. Instead of waiting for centralised exchanges to list them, you’ll be able to mint, transfer, and trade Runes assets across supported networks. Rosen’s on-chain token mapping simplifies deployment and removes the need to patch configs manually. Also, it opens opportunities to build liquidity scripts and automated swaps directly around Bitcoin-native tokens once liquidity pools form on [ErgoDEX](https://www.ergodex.io/ergo/swap).

When Bitcoin Runes go live through [Rosen](https://rosen.tech/), cross-chain fungible assets will become a day-to-day tool.

Deployment to mainnet and asset minting are now in progress. The team expects the full bridge release before the end of the month.

