What is Alto?
Alto is a credit and incentives protocol built around its native stablecoin, DUSD. It turns idle collateral into productive capital by allowing users to borrow, lend, and mint DUSD within isolated markets. Each market is self-contained, which means risk and parameters are independent, keeping the system resilient and capital-efficient.
What is DUSD?
DUSD is Alto’s native USD-pegged stablecoin and the only asset used for borrowing and lending across all markets. In Borrow Markets, DUSD is supplied by lenders and borrowed by users posting collateral. In Mint Markets, DUSD is newly created against collateral within a debt ceiling. Inside the protocol, DUSD is always treated as 1 USD for risk and accounting purposes.
What’s the difference between Borrow and Mint Markets?
Borrow Markets allow users to lend or borrow existing DUSD. Lenders earn interest from borrowers, and borrowing capacity depends on available liquidity.
Mint Markets let users mint new DUSD directly against their collateral up to a predefined debt ceiling. Interest from these positions is directed to ALTO stakers. Both market types use the same liquidation and risk models for consistency.
How does Alto manage risk?
Each market is isolated to prevent contagion across the system. If a position becomes undercollateralized, Alto performs partial liquidations — selling only what’s needed to restore a safe loan-to-value (LTV). The Dynamic Close Factor (DCF) and Dynamic Liquidator Bonus (DLB) adjust liquidation behavior to minimize losses and reward timely liquidators, maintaining market health and solvency.
What is ALTO and why should I stake it?
ALTO is the governance and revenue-sharing token of the protocol. By staking ALTO in dynamically rebalancing “containers,” users gain voting power and a share of protocol revenues. Stakers earn from borrow opening fees, mint interest, and liquidation fees, while also influencing key parameters through governance. Longer lock durations earn higher voting multipliers and fee shares.
How are rewards distributed?
Active users earn Alto Reward Options (ARO) — non-transferable options that let you purchase ALTO at a discounted price. Borrowing, lending, or minting DUSD generates AROs proportional to your interest activity. Discounts can be boosted by staking ALTO or via referral adapters. Exercising AROs uses DUSD or USDC, and payments flow to the Alto Treasury to sustain long-term growth.
How does governance work?
Governance is driven by ALTO stakers. Voting power depends on the amount and duration of your staked tokens. The DAO can adjust lending parameters, emission rates, and market configurations. Containers automatically rebalance lock durations each epoch based on participation, keeping the system fair and adaptive.
What fees exist in the protocol?
Fees depend on the market type:
- Borrow opening fees – go to ALTO stakers
- Borrow interest – paid to DUSD lenders
- Mint interest – paid to ALTO stakers
- Liquidation fees – partially shared with ALTO stakers