According to Cointelegraph, the Pareto private credit market platform has launched a new synthetic dollar USP, aimed at connecting institutional investors with DeFi opportunities. This synthetic dollar is fully backed by real-world private credit assets, and users can mint it by depositing stablecoins like USDC or USDT at a 1:1 ratio.
Matteo Pandolfi, co-founder of Pareto, explained that the deposited funds will be placed in Pareto's credit vault and lent to audited institutional borrowers, generating returns for participants. To maintain the dollar peg, Pareto uses a "native support" process and arbitrage mechanism, and has established a protocol-funded stability reserve as a buffer in case of borrower defaults.
