What happens when I borrow?
Collateral is routed to Compound. Then, a new USDC loan is taken from Compound. This USDC loan is used to mint TUSD (no added fee). The TUSDEngine holds the idle collateral in USDC. User will repay TUSD with interest, we repay Compound. Users receive TORQ rewards, treasury may earn USDC/COMP/STG in the future when collateral sitting in USDEngine is made productive.
Why would I borrow?
One may borrow for many reasons, but in general originating your loans through Torque allows users to receive a loan while earning TORQ while collateral efficiency is improved through routing to the underlying money market.
Why use Torque USD?
Torque USD introduces rehypothecation to decentralized finance, which amplifies the utility of each dollar in the protocol. While it may have been among many factors contributing to the 2008 financial crisis, it wasn't the sole culprit. The crisis was the result of a combination of mismanagement, opaqueness, and inadequate oversight, which are sufficiently addressed in a decentralized protocol.
Rehypothecation in the Torque fashion has the ability to significantly increase market liquidity. By allowing the reuse of collateral, it ensures that assets aren't sitting idle and are instead contributing to economic activities. When implemented correctly, it can lead to more optimized and effective use of funds within a financial ecosystem.
How to buy TORQ?
TORQ is now listed on Uniswap. Follow us on Twitter to stay updated. You can purchase it by connecting a wallet on Uniswap. Make sure the network is set to Arbitrum and the correct contract address is entered. TORQ's contract address is 0xb56C29413AF8778977093B9B4947efEeA7136C36 and can be verified on Arbiscan here
How does USD Farm work?
Users of USD Farm may mint/burn TUSD directly (without rehypothetication like through the Torque user interface) and also provide liquidity to Torque pools (to earn trading fees and collect TORQ rewards). The collateral assets from TUSD minting currently sit idle but may be routed to increase productivity according to TUSDSt (Torque USD Strategies). Users may burn TUSD for their underlying collateral back. Users may claim earnings from collateral assets. Collateral asset earnings may be compounded daily with a performance fee included.
How does TORQ accrue value?
TORQ doesn't accrue value directly. TORQ is mechanism for decentralized governance and coordination. The Torque treasury may earn performance, transaction, and origination fees and TORQ holders govern the treasury.
Can I learn more?
Of course, join us on Telegram.