🐴 What?

Colt is a franchise fork of dTRINITY, deployed natively on SagaEVM. The protocol issues a decentralized meta-stablecoin called Saga Dollar (D), fully backed by an on-chain reserve of other stablecoins and yield-bearing assets. The yield generated by D’s reserve is redirected to its borrowers on integrated lending protocols such as Palomino**—**subsidizing D’s interest expenses.

Users may stake D into the Staked Saga Dollar (stkD) ERC4626 vault, which automatically supplies it into lending protocols. The stkD receipt token functions similarly to a yield-bearing stablecoin (YBS), providing holders composability, secondary market liquidity, and access to on-chain yields. Thus, stkD holders are effectively D lenders.

🤔 Why?

D provides the Saga economy with a capital-efficient stablecoin to facilitate trading, lending, and borrowing, while stkD delivers yield-bearing liquidity to native dApps and users on Saga.

Saga Dollar (D): Non yield-bearing stablecoin, with borrowing costs subsidized by reserve earnings. D is designed to be a low-cost debt instrument, stimulating credit demand in the Saga economy.
Staked Saga Dollar (stkD): Tokenized stablecoin lending deposits, with intrinsic yield powered by D’s subsidy-boosted utilization. stkD is designed to be a high-yield YBS, attracting credit supply to the Saga economy.

🤌 How?

Not only do subsidies lower Net Borrow APRs for D borrowers, they also stimulate credit demand and utilization on integrated lending protocols, leading to higher Supply APRs for D lenders. As a result, the Saga economy may access above-market stablecoin yields.

Thanks to increased lending and borrowing activities, D’s and stkD’s velocity on integrated DEXs also rise—generating more trading volume and fees for LPs (liquidity providers). This helps attract more liquidity to the Saga economy.

😎 Who?

The Colt protocol benefits market participants on both sides of the market (Supply & Demand):

Buy-Side Supply: Lenders and stakers earn superior yields.
Sell-Side Demand: Borrowers and loopers (carry traders) gain access to efficient leverage.
Sell-Side Supply / Buy-Side Demand: LPs process higher trading volume and earn more fees.
Native dApps: Saga protocols that support Colt assets unlock more capital efficiency, liquidity, and velocity—improving user experience and adoption.

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For user instructions, please refer to our User Guide.

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🌐 Where?

Colt is deployed natively on SagaEVM, Saga’s Ethereum-compatible execution layer serving as the DeFi hub within the greater Saga ecosystem of layer-1 chainlets. By isolating dApps on dedicated chains, SagaEVM delivers lower fees, faster throughput, and seamless interoperability, making it a powerful foundation for DeFi, gaming, and high-performance Web3 applications.

Users can lend, borrow, provide liquidity, or swap D and stkD with other assets via external Liquidity Pools and Lending Markets on Saga.