FIAT DAO

FIAT protocol allows users to borrow against their positions in fixed-income assets that are issued by DeFi protocols. FIAT DAO launched in early November 2021. Users can mint FIAT through collateralized debt positions and utilize it for trading throughout DeFi. They can participate in FIAT liquidity pools for governance rights in the protocol. It gives them hedge exposure to different underlying assets, protocols, and time horizons. Users can also redeem FIAT for fixed-income assets without order books or market makers.

In the FIAT protocol, users can deposit supported fixed-income assets as collateral. $FIAT is not a stablecoin. The protocol prices deposited collateral through a discounted cash flow calculation. Users mint $FIAT against the overall principal sum of their collateral as a feature of protocol pricing. Users can also redeem their $FIAT to either pay down their collateralized debt position or to receive a collateral asset in the protocol vault.