USDL is an algorithmic stablecoin that aims to always be worth one US dollar. Many stablecoins today are fiat-backed. But USDL is different. It doesn’t rely on dollars in a bank account. Instead, USDL is minted when users deposit PLS (PulseChain coin) as collateral that has been locked into individual smart contracts called Vaults.
LOAN is the secondary token issued by the protocol. It captures the fee revenue that is generated by the system and incentivizes early adopters. You earn LOAN by providing USDL to the Stability Pool in exchange for rewards. You can also stake your LOAN tokens to earn the revenue paid for borrowing or redeeming USDL.