Ultraviolet
Ultraviolet is a derivative primitive initially built on top of Infrared, aiming to initially create a two token model derived from $iBGT, issuing $uvBERA, a $BERA soft pegged stablecoin, and $uvPREM, a bribe-backed floating asset. Ultraviolet is therefore creating the first $BERA based stablecoin as well as a new speculative instrument based on the premium between $BERA and $iBGT without the high β correlation to $BERA price action.
At any point in time, 1 $uvBERA + 1 $uvPREM are redeemable for 1 $iBGT, and vice-verca. Dynamic arbitrage through minting and redeeming processes from market participants on the open market guarantees a close β correlation to $BERA, while conserving the natural floating nature of $uvPREM.
Why UV assets are needed
The focus of Ultraviolet is to offer alternative instruments for users looking to gain exposure to Berachain’s Proof of Liquidity. With Ultraviolets first products offering both unique assets that can be used for speculation on the growth or decline of Berachain’s economics. Both uvBERA and uvPREM offer completely novel instruments to express exposure to their underlying and will continue to do so as their composability within DeFi increases.
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