Polaris 101

Polaris is a permissionless onchain infrastructure built around pETH, a yield-bearing reserve asset designed to collateralize censorship-resistant stablecoins and synthetic assets.

ETH enters the system through the Polaris bonding curve and becomes pETH, the collateral asset at the center of the ecosystem. Stablecoins, commodities and synthetic assets are all issued against pETH, with the economic activity they generate flowing back into the ecosystem.

The flagship market of the Polaris ecosystem is USDp, a fully decentralized and censorship-resistant dollar backed by pETH. Built on the same infrastructure, GOLDp is the first permissionless onchain market, with many more currencies, commodities, and synthetic assets coming to expand the ecosystem over time under the same framework and collateral asset.

Beyond collateralizing markets, pETH can also be split into fpETH and vpETH.

pETH = fpETH + vpETH, where fpETH represents the ever-rising floor price of pETH, while vpETH isolates its market premium and volatility.

The primitives introduced throughout Polaris can be combined in different ways, enabling non-liquidatable ETH loans, carry trades that turn traditionally non-yield-bearing assets into yield-bearing ones, capital-efficient DeFi looping, and entirely new strategies built on top of the protocol.

Together, these mechanisms form a monetary system where protocol activity strengthens collateral, collateral supports liquidity, and liquidity drives further protocol activity, without relying on external counterparties or offchain dependencies.

Everything happening within the protocol contributes to the same underlying economy. Bonding curve fees, borrowing demand, conversions, liquidations, and other protocol activity generate revenue that is redistributed across the ecosystem through native yield, strengthening its assets and the users who hold them.

This enables value created within Polaris to remain within Polaris.