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iUSD Receipt Token

Definition ∞ An iUSD receipt token is a digital token representing a claim on underlying iUSD, typically issued by a protocol or platform. This token acts as a proof of deposit or a share in a specific liquidity pool or yield-generating strategy. It allows holders to redeem their original iUSD plus any accrued returns. These tokens enable further financial operations within decentralized systems.
Context ∞ The functionality of iUSD receipt tokens is crucial in decentralized finance for representing staked or lent assets, enabling further composability within the ecosystem. Understanding their mechanics is key to assessing risks and rewards associated with various DeFi protocols. Transparency regarding underlying assets is a critical consideration.

A close-up view presents a sophisticated metallic mechanism, featuring a central circular component with nested rings. Attached prominently is a multi-faceted, clear blue, ice-like structure, reflecting light. This intricate design conceptually embodies a cryptographic primitive within a Distributed Ledger Technology DLT framework. The precise engineering suggests a node validation unit executing a consensus mechanism, ensuring immutability of data. The blurred background hints at a broader protocol architecture, signifying complex smart contract execution within a blockchain network.

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InfiniFi Launches On-Chain Fractional Reserve Banking Capturing $33 Million TVL

The protocol introduces a transparent, on-chain fractional reserve primitive, segmenting stablecoin deposits into liquid and illiquid risk tranches to optimize capital efficiency.