Self-Scaling Stablecoin Operating System
We're building uncorrelated, scalable returns without T-Bills, without CEXs, without compromises.
X Space
Counterparty free
Polaris is free of trusted assets or other offchain dependencies: the whole protocol lives onchain; transparent and auditable
Unique yield source
Harnesses novel, uncorrelated yield sources by monetizing volatility and growth via a bonding curve
Scalable yields
pUSD and pETH harness self-correlated yield sources as their adoption and supply grow
Immutable & trustless
Fully onchain, immutable and extensively verified: simulations, agent-based modeling and Tier-1 audits.
How Scalable Yield Works
Polaris is a triple-engine stablecoin protocol built to solve the stablecoin “Yield Trap”. By monetizing pETH volatility via a bonding curve, conversion mechanics, and CDP architecture, Polaris generates uncorrelated yield that scales as the system grows without counterparty or credit risk.
Bonding Curve
- pETH, the protocol's collateral, is minted by depositing ETH into a bonding curve, capturing volatility and translating it into yield for pUSD borrowers.
CDP Architecture
- Polaris harnesses a CDP architecture optimized for growth and stability: it provides maximal guarantees to pUSD holders and compelling borrowing terms to pUSD borrowers. It's flexible and can cater for assets with negative interest rates, such as gold.
POLAR Issuance
- New POLAR is minted by performing the most synergistic action possible for the protocol: burning pETH, which raises its floor price, increasing pUSD's collateralization ratio and releasing additional yield.
Triple-Engine Architecture
Three interlocking primitives power the Polaris ecosystem, designed to generate sustainable yield while maintaining robust stability mechanisms.
pUSD
Stability that pays you back
Yield-bearing stablecoin minted against pETH, backed by pristine collateral with yield that scales with supply
pETH
Supercharged ETH with a safety net
A token backed by ETH held within the bonding curve that benefits from an ever rising price floor growing with activity
POLAR
Stable beta, real yield
Stewardship token minted via 1-way conversions, generating yield and increasing stability
Stewardship, not Governance.
Governance fails because of structure, not people. Here's how stewardship fixes the structure with immutable foundations and scoped human judgment.
Read the article
Stablecoin Operating System
The Polaris StablecoinOS is a framework to steward Polaris growth and enable selected projects to deploy their own decentralized stablecoin while benefiting from shared liquidity and protocol-level integrations.
Stewarded, not governed
- While no changes can be made to the core protocol logic, several parameters can be adjusted to adapt to any market situation and protocol growth stage.
- Only a small set of quantitative parameters can be adjusted, all within hard-coded safety bounds and subject to onchain voting and delay.
- POLAR holders can lock their token to obtain vePOLAR and vote on those changes and the distribution of incentives to grow the ecosystem.
Forkable infrastructure, shared liquidity
- The Polaris CDP infrastructure can be forked to deliver stablecoins tracking any currency or commodities: pCHF, pGOLD, etc.
- Obtaining the licensing right over the CDP infrastructure requires the approval of vePOLAR holders.
- Many pFiats/pCommodities, but one pETH: all stablecoins share the same collateral, further contributing to the resilience of the whole ecosystem.
True community ownership
- Any participant of the Polaris ecosystem, not just the forks, can join the StablecoinOS: integrators, frontends, etc.
- Doing so requires sharing revenues with vePOLAR holders, enabling them to gain access to a stream of incentives proportional to the gauge-voting they receive to grow their application.
- vePOLAR holders are the ones allocating resources within the ecosystem to foster its growth.
pGOLD: Finishing what DigixDAO started.
How pGOLD breaks the XAUT/PAXG duopoly without touching a single gold bar.
Read the article
Our Principles: The North Star of Ethereum
We've been in the trenches for too long to see the space we've dedicated our lives to neutralized. Polaris is our answer to the centralization of DeFi.
Zero value leakage, maximal growth potential
By internalizing all system activity, Polaris ensures no value is leaked to external parties, capturing all revenue streams and redirecting them to best support the protocol and overall ecosystem.
Scalable, without offchain dependencies
Unlike other stablecoins that might experience fast early growth, but eventually plateau and turn into T-bill wrappers; Polaris creates and nurtures its own yield source as it grows, enabling yield that scales regardless of its current size.
Immutable core, unlimited growth
Polaris provides maximal guarantees to its users thanks to its immutability while still being able to evolve and incorporate new product offerings thanks to its stewards.
Built by a team with 7 years of stablecoin experience
The Polaris team is composed of experienced Solidity developers who shipped several stablecoins. They learned from their experience, and are joined by DeFi legends to face the final boss.
Built by DeFi Veterans
Seven years of stablecoin experience, distilled into Polaris.
Protocol Roadmap
From conception to mainnet and beyond. Our path to scalable, trustless stablecoins.
01
Protocol Design
CompleteCore mechanisms defined, bonding curve mathematics finalized
02
Testnet Launch
CompleteLive on Sepolia. Explore metrics at Testnet Analytics
03
Security Review
In ProgressAgent-based modeling, simulations, audit preparation
04
Audits
UpcomingProfessional security audits & extensive pre-launch modelization
05
Mainnet Launch
UpcomingFollowing comprehensive security review and audits
06
StablecoinOS
FutureStewardship begins to handle protocol parametrization and fork licensing, ecosystem incentives start.
Transmission Log
Start here for the long-form interviews and shows that unpack the Polaris thesis in full.
YouTube
No T-bills, No CEXes, No Compromises - Introducing Polaris
Frequently Asked Questions
Everything you need to know about Polaris before mainnet.
While Polaris shares the trustless, immutable ethos of Liquity (LUSD, BOLD), we introduce a fundamentally different yield generation mechanism.
Liquity/BOLD generate yield primarily from:
- Borrowing interest rates
- Liquidation penalties
- Redistribution mechanisms
Polaris adds a bonding curve that captures value from:
- ETH volatility and trading activity
- Rising pETH floor price from fee burns
- Conversion auctions that burn pETH to mint POLAR
This creates a self-scaling yield source that grows with protocol adoption, not just borrowing demand.
Polaris is built with an immutable core, but also has flexibility thanks to its stewardship which can modify some parameters within hard-coded bounds.
Additionally, Polaris is designed as a Stablecoin Operating System: the same infrastructure can fork to create pGOLD, pCHF, and other assets, all sharing the same pETH collateral base.
Polaris is currently in gated testnet phase on Sepolia. Access is limited to select participants while we refine the protocol and gather feedback.
You can explore live protocol metrics, including:
- Total ETH deposited in the bonding curve
- pETH supply and floor price
- pUSD borrowing activity
- Stability Pool deposits
Visit our Testnet Analytics dashboard to see real-time data.
Mainnet launch is planned following comprehensive security reviews, including agent-based modeling, economic simulations, and professional audits. No date is set yet—we prioritize security over speed.
Testnet tokens have no real value and are for experimentation only.
Like all DeFi protocols, Polaris carries risks that users should understand:
Smart Contract Risk
All protocol contracts will undergo extensive auditing and formal verification before mainnet. However, no code is ever fully risk-free.
pETH Price Volatility
pETH trades at a premium to its floor price, and this premium fluctuates with market sentiment. While the floor only rises, the market price can experience volatility against ETH. Your entry price and the current floor ratio determine your maximum potential drawdown.
Oracle Risk
The protocol relies on price oracles for CDP operations. While we use robust, decentralized oracle solutions, oracle failures remain a systemic risk in DeFi.
Stewardship Risk
While core protocol logic is immutable, certain parameters can be adjusted by vePOLAR holders through stewardship. This introduces stewardship risk, though bounded by hard-coded safety limits and time delays.
Liquidity Risk
While the bonding curve guarantees liquidity at the market price, extreme market conditions could affect the redemption experience.
The Polaris bonding curve is a mathematical mechanism that creates pETH from ETH deposits with three key properties:
1. Guaranteed Liquidity
Unlike AMMs that require liquidity providers, the bonding curve itself is the counterparty. You can always swap ETH for pETH (minting) or pETH for ETH (burning) at the current curve price.
2. Rising Floor Price
Every swap pays a fee in pETH, which is burned. Each burn reduces supply, which increases the floor price—the minimum redemption value of pETH in ETH terms. This floor never decreases.
3. POLAR Conversion
New POLAR tokens can only be minted by burning pETH through a conversion auction. This mechanism spikes the floor price upward, creates demand for pETH, and connects the three Polaris tokens (pETH, pUSD, POLAR).
The Formula
The curve follows price = alpha × supply^beta, where beta (~0.3) keeps pETH closely coupled to ETH while allowing enough volatility for interesting dynamics.
Over time, the floor price only moves in one direction: up.
The Polaris testnet allows you to experiment with core protocol mechanics using valueless test tokens.
Available Actions
- Deposit ETH into the bonding curve to mint pETH
- Swap between ETH and pETH to observe curve pricing
- Open CDPs using pETH as collateral to borrow pUSD
- Deposit pUSD into the Stability Pool to earn yield
- Trigger liquidations and observe the Stability Pool mechanism
- Monitor all activity via the Testnet Analytics dashboard
What to Observe
- How the pETH floor price rises with each swap
- The relationship between pETH market price and floor price
- How borrowing interest rates adjust based on utilization
- Liquidation dynamics and Stability Pool gains
Getting Started
The testnet requires a special version of wETH that we distribute. Users interested in trying out should DM Polaris on Twitter/X to request access.
The Stablecoin Operating System (StablecoinOS) is Polaris's framework for ecosystem growth and protocol expansion.
Core Concept
While the core Polaris protocol (pETH bonding curve, pUSD CDP) is immutable, the StablecoinOS enables controlled evolution through:
Parameter Stewardship
vePOLAR holders can adjust quantitative parameters within hard-coded safety bounds:
- Interest rate curves
- Liquidation ratios
- Stability Pool reward splits
Fork Licensing
Teams can deploy their own stablecoins (pGOLD, pCHF, etc.) using Polaris infrastructure. Licensing requires vePOLAR holder approval and includes revenue sharing.
Ecosystem Integration
Frontends, integrators, and yield aggregators can join the StablecoinOS, gaining access to protocol incentives based on gauge voting.
One pETH, Many Stablecoins
All forks share the same pETH collateral. Whether you're borrowing pUSD, pGOLD, or pCHF, your collateral is the same rising-floor asset. This creates network effects: more stablecoins = more pETH demand = higher floor price = better collateral for everyone.
Separation of Concerns
- Core Protocol: Immutable, handles pETH and pUSD
- StablecoinOS: Evolvable, handles growth and ecosystem
This structure gives Polaris both nuclear-grade security (immutable core) and infinite scalability (forkable infrastructure).