Introduction to Plether

Plether is a decentralized protocol that provides synthetic exposure to the US Dollar Index. It functions by splitting USDC collateral into two distinct tokens - plDXY-BULL and plDXY-BEAR - allowing users to take opposing positions on the strength of the dollar.

The Plether protocol guarantees full redeemability for USDC at all times. By maintaining at least 100% collateral backing, the system ensures you can always exit your position, regardless of the current market price of plDXY-BULL or plDXY-BEAR.

While the combined redemption value is fixed at $2.00, individual token prices float on secondary markets.

The protocol enforces a $2.00 hard cap on plDXY-BEAR to maintain full collateralization. This edge case represents a tail risk scenario involving an extreme devaluation of the USD against the currency basket.

Plether combines FX exposure with native DeFi composability, creating a versatile asset ready for lending markets, borrowing protocols, yield strategies, and more.