Stablecoins
ENNI issues overcollateralized stablecoins pegged to fiat currencies. Each stablecoin is its own independent deployment with its own CDP, oracle, and collateral pool.
Currently Live
| Stablecoin | Peg | Decimals | Direct Swap |
|---|---|---|---|
| enUSD | US Dollar | 6 | USDC, USDT |
| enCHF | Swiss Franc | 6 | ZCHF |
Both have no supply cap. Supply grows when people borrow or mint, and shrinks when they repay or redeem.
How They’re Created
There are two ways stablecoins enter circulation:
CDP borrowing. Deposit WETH as collateral, borrow stablecoins against it at 0% interest. Stablecoins are minted fresh when borrowed and burned when repaid. Available for all currencies.
Direct Swap. Deposit a backing stablecoin (USDC, USDT, or ZCHF) and receive the equivalent ENNI stablecoin at 1:1 value. No fee on minting. The deposited tokens stay in the contract and back future redemptions.
Redeeming
Redeem ENNI stablecoins back to their backing tokens through Direct Swap at 1:1 value minus a 0.5% fee.
For enUSD, the redemption fee is donated to the Rewards Vault as protocol revenue for ENNI stakers. For enCHF, the redemption fee is burned, making enCHF deflationary over time.
Redemption is limited to what has been deposited. If 10M USDC was minted through Direct Swap but 0 USDT, you can only redeem to USDC.
Backing
| Source | Collateral Ratio |
|---|---|
| CDP-minted | Minimum 117.6% in WETH (from 85% max LTV) |
| Direct Swap minted | 100% in backing stablecoin (USDC, USDT, or ZCHF) |
No stablecoin has fractional reserve or unbacked minting. Every unit in circulation is backed by either ETH collateral or stablecoin reserves sitting in a contract.
ZCHF and Decimal Scaling
ZCHF (Frankencoin) uses 18 decimals while enCHF uses 6 decimals. The Direct Swap contract handles this automatically. 1 ZCHF (1e18) mints 1 enCHF (1e6). When redeeming, 1 enCHF returns 0.995 ZCHF after the 0.5% fee.