# Asset Protocol **Asset agreement: FUSD, xToken, UBill, Applied NFT** ▪ Asset agreement specifically refers to the tokization process of assets on or off the chain, which are encapsulated into different forms of tokens. For example, DAI is an asset agreement in the MakerDAO system, where users cast DAI by mortgage Ethereum or other digital assets. There are also interest-generating tokens, such as cDAI for Compound and UBill NFT for Honingdas Network. Both tokens represent an asset and interest income derived from an interest-bearing agreement, and the user has the right to redeem the principal and the corresponding interest at any time. ▪ Our asset-class protocols include stablecoin protocols (e. g., FUSD, the first algorithm, stablecoin protocol, issued by Honingdas Network), and interest-generating tokens agreements (e. g., UBill NFT, representing some stable asset and its corresponding interest income). We plan to release more different types of asset-class agreements in the future. ▪ Asset-class protocols are upstream protocols, with a strong and wide moat and lasting network effects, while also providing important liquidity support for downstream functional protocols. As upstream agreements, asset agreements can be combined with other asset agreements and functional agreements (decentralized exchanges, lending agreements, etc.) to create a moat and create synergies with downstream agreements, while the essence of its currency is conducive to strengthening network effects. For example, for a protocol that integrates with the FUSD, the FUSD will be forever deposited in its system as an asset and liquidity. Of all the asset-class protocols, stablecoins have the strongest network effect. We believe that building a general stable asset interest-bearing protocol framework that can support most stablecoins will help to build a sustainable and highly viscous network effect to better achieve the liquidity and asset precipitation and retention of our protocol matrix. As the most important and competitive asset-class agreement, the stablecoin can be: 1\. As the basic trading layer and basic module of all functional open financial protocols; 2\. The most important application scenario is to be used as a medium of cross-border capital circulation; 3\. As a bridge connecting the traditional financial sector, to promote digital currency transactions.stablecoins are the fluid of open financial system, which reduces the dependence of digital open financial networks on traditional financial infrastructure. Our protocol matrix is centered on the stablecoin and aims to achieve the maximum potential of the stablecoin. Our core three protocols will support and integrate multiple stablecoins. In addition to the stablecoin FUSD, we are about to launch a derivative interest-bearing agreement that supports most mainstream stable assets. The agreement will simultaneously accommodate the optimal asset returns, and, more importantly, it will help to pool and retain liquidity and assets within the Honingdas Network's agreement matrix. The interest-bearing token agreement isolates the asset provider (depositor) and the asset demander (lender). Interest-generating tokens agreement is designed to create a unified pool, will collect funds in proportion into different lending / liquidity agreement (including third-party lending agreement, mixed lending pool, high-yield assets pool), in order to obtain the risk adjusted highest returns, at the same time, can maintain flexibility, subsidies our agreement matrix lending agreement, make the borrowing rate is optimized. Through this design, the internal contradiction of high deposit income and low borrowing costs can be reconciled. In addition to the stablecoin agreement and interest-bearing asset agreement, we also plan to develop asset tokens that anchor other sovereign currencies, goods and physical objects in the future, with carbon quotas and renewable power as important directions to explore. **Application implementation** The first is the FUSD protocol- -a dollar stablecoin protocol based on the smart contract smart algorithm. FUSD Market is the exchange market for smart contracts in the protocol, where $HDS can be exchanged with one FUSD at any time. When the price of FUSD deviates from $1, the arbitrage motivation is used to return the FUSD to USD. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. 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