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Welcome to Alto

Alto is a credit and incentives protocol built around its own native stablecoin, DUSD. It provides a clear framework for turning idle collateral into productive capital, allowing users to borrow, lend, and mint DUSD within a secure and risk-contained environment.

The protocol is organized into two types of isolated markets that use DUSD as the sole borrowable asset. Isolation prevents problems in one market from affecting others. Using a single native stablecoin simplifies accounting, risk management, and capital flows.

What you can do in Alto​

  • Borrow: Open a position by borrowing or minting DUSD against supported collateral. Each market defines its own collateral types, loan-to-value limits, and interest parameters.

  • Supply: Provide DUSD to Borrow Markets and earn interest paid by borrowers. Supplied assets remain liquid and can be withdrawn at any time, subject to market utilization.

  • Leverage: Use your collateral more efficiently by opening leveraged positions in a single transaction. Leverage can open a position at a requested multiplier instantly, removing the need for manual loops or repeated deposits and borrows.

How value and risk are managed​

  • Activity drives rewards: Borrowing, supplying, and minting are rewarded with Alto Reward Options (ARO). Each ARO grants the holder the right to acquire the ALTO token at a preferential price compared to recent market levels. Exercising these options is optional, but they provide a direct path for active participants to convert protocol usage into potential ownership on favorable terms.
  • Ownership accrues value: Protocol revenue comes from borrow opening fees, interest from Mint Markets, and a share of liquidation fees. Users who stake ALTO lock their tokens in dynamically rebalancing containers to gain voting power and a share of these revenues.
  • Risk is contained: Each market is isolated and uses partial liquidations. If a position becomes undercollateralized, the system sells only the amount of collateral needed to restore a safe loan-to-value. The process is guided by a Dynamic Close Factor (DCF) and a Dynamic Liquidator Bonus (DLB) to protect users while maintaining solvency.

By minting its own stablecoin and building a complete credit system around it, Alto offers a straightforward, conservative, and scalable way to manage collateral, liquidity, and incentives.