What is Davos?

Davos Protocol is a decentralized finance (DeFi) platform that enables users to access liquidity without selling their assets. It operates as a Collateralized Debt Position (CDP) system, allowing users to lock up Liquid Staking Tokens (LSTs), Liquid Restaking Tokens (LRTs), and other reward-bearing assets as collateral. The protocol ensures over-collateralization to maintain stability, requiring collateral to be at least 150% of the borrowed amount to safeguard against market volatility. DUSD, Davos' stablecoin, is designed for yield optimization and price stability.

Davos' dynamic borrowing system adjusts interest rates based on the Personal Consumption Expenditure (PCE) index, Federal Reserve rates, and stablecoin lending rates, ensuring fair borrowing costs in relation to the risk of the collateral used. The platform also incorporates cross-chain functionality, supporting multiple blockchains, providing users with broader DeFi opportunities.