USW Architecture

USW is decentralized and overcollateralized stablecoin minted by supplying ETHW to the money market.
USW is decentralized and overcollateralized stablecoin modelled after DAI but created with the underlying code from Compound v2 (current version as at April 2022).
The code is in essence a simple money market with only two assets being wETHW and USW.
wETHW is the only initial asset with collateral. USW price is defaulted to 1 and wETHW price is updated manually after reading from CEX. At a later date it is expected to go off TWAPS or other onchain Oracles.
USW collateral factor is set to 50%. Reserve factor is 10%.
USW will be a fixed supply token, with 10 Trillion USW total minted.
All USW has been supplied to the money market contract and the pTokens for USW were sent to a burn address - (scan link).
This means the only way that USW can come into circulation is if someone borrows it by staking ETHW on the platform, thus ensuring it is always collateralized. No USW can enter circulation via any other means.
USW interest rates are periodically adjusted to get it closer to peg. USW is expected to have a loose peg initially and later the peg is expected to become tighter as liquidity increases.
If USW is below peg, it becomes less attractive to mint more as the price is set to 1 on the system. You can instead buy it on market and repay your debts cheaply. Separately the interest rates would also go up to boost staking in the platform and disincentivizing minting.
The process would work in reverse when USW is above peg.