Introducing FIRM: the native stablecoin of Status Network
Status Network is the first reputation-based L2 for humans and bots enabling gasless transactions at scale.
Instead of charging users for every action, the network is funded through native yield generated from productive capital on the L1 and core application activity on the L2. Native yield allocation is governed by reputation.
Today, we’re introducing FIRM, the native CDP stablecoin built for this new execution model.
This announcement marks the second step in the rollout of core Status L2 primitives ahead of mainnet. As a reminder, last week we announced Orvex, the native DEX and liquidity coordination layer of Status Network.
Ethereum itself is scaling. Block space is no longer the primary constraint it once was. What differentiates execution environments today is not throughput, but how execution is structured.
As a result, L2s are no longer defined by how much they scale Ethereum, but by the new features they offer and the new use cases they enable.
Capital coordination is a core tenet of crypto and L2s are the perfect playground to keep experimenting on it.
But those iterations have not been radical enough, until now.
Status Network unlocks a radically new design for onchain economies: anyone can get access to free transactions with high throughput, while most of the economic value created by the network is captured as native yield, and redistributed based on community governance.
Reputation is at the heart of the model: to get access to free transactions and increase your governance power over the native yield, you must contribute to the network. Contributing goes from simply using apps all the way to providing liquidity and staking.
FIRM is the decentralized stablecoin protocol designed specifically for this new model.
FIRM is the canonical chain-owned stablecoin protocol for Status Network. FIRM is built specifically for Status L2 and is partially owned by Karma holders. Karma is the reputation and governance token at the core of Status Network. The value that FIRM unlocks will always benefit the network as a whole.
FIRM is a decentralised stablecoin protocol that issues $USF, a 1.00 USD pegged stablecoin minted against ETH and Status Network’s core tokens like SNT and future native assets. This anchors liquidity within the network and allows issuance to grow alongside real usage. When Status wins, FIRM wins and vice versa.
Most L2s make you choose between participating in the network governance and participating in the DeFi ecosystem built on it. FIRM does it all:
- Borrow against ETH and SNT without selling them, and access the capital value of your tokens.
- Earn Karma for using the FIRM protocol.
- Distribute protocol revenues through Status L2 governance.
FIRM draws yield from multiple sources: borrowing activity, liquidations, and native yield capture through governance. This makes the system less dependent on a single source and given the right conditions can generate higher risk-adjusted yield sustainably. Users of the FIRM protocol will even earn Karma which grants gas-free transactions on Status L2 and grant them higher governance power on the L2 native yield.
FIRM’s stablecoin, $USF, is fully redeemable by anyone for the underlying collateral. This ensures a reliable peg. FIRM is a friendly fork of Liquity V2, which is rated among the safest stablecoin systems ever created.
FIRM is built to last, it’s a sturdy base to grow a vibrant DeFi ecosystem on top of.
Get updates on Firm and learn more here: https://usf.money/
Status Network is based on the following primitives:
- Gasless execution
Gas-free transactions are enabled by RLN (Rate Limiting Nullifier), which enforces address-level quota limits using zero-knowledge proofs. Based on their level of reputation, users -humans and bots- get access to a tier of free transactions throughput.
- Native yield governance
Status Network is funded through native yield generated from: bridged yield from productive assets on the L1 + native app fees on the L2. Native yield is used to incentivise liquidity and fund app builders and its allocation is governed based on reputation.
- Karma
Karma is the soulbound reputation and governance token of Status Network. It aligns real engagement and contribution to the L2 with gasless throughput and power over native yield allocation. Karma is earned by staking $SNT, providing liquidity, building and using apps.
FIRM operates as a self-sustaining loop designed for stability, yield, and network alignment.
- Borrow & Mint
Users deposit ETH, staked ETH, or Status-native assets as collateral and mint USF, the FIRM stablecoin. Positions are held in NFT vaults, making them transferable and composable across Status applications.
- Set your rate
Borrowers choose the interest rate they are willing to pay, and can update it anytime to balance between cheap loans and higher stability. Or use a Rate Manager partner to have it set safely automatically.
- Earn Karma & Native Yield
USF holders earn 75% of borrower fees and all liquidation fees, plus governance incentives from FIRM and Status Network, and receive boosted reputation through Karma.
Pre-deposits are now live at hub.status.network/pre-deposits, deposit ETH or SNT ahead of mainnet launch to earn additional rewards when the L2 goes live.
Additional native apps will be announced in the coming weeks. Additional components, including deeper integration with Orvex for USF pairs, will be introduced progressively as Status Network moves toward mainnet.
Learn more at usf.money and status.network.
