# Pareto > Programmable institutional credit Pareto is an institutional private credit protocol. It connects institutional lenders and borrowers through onchain credit vaults. Pareto is an onchain private credit protocol for institutional asset managers, digital asset funds, and professional investors. It connects lenders and borrowers through Credit Vaults, with smart contract execution and curator oversight. Lenders earn yield from credit exposure to vetted borrowers. Curators structure each facility, including fixed or variable rates, redemption cycles, and tranches, while smart contracts automate interest distribution and track fund utilization. Borrowers use the capital for strategies such as market making, derivatives trading, and arbitrage. Lenders are KYC-verified, and governance runs through the IDLE token. Pareto Credit Vaults are the flagship product, alongside the USP synthetic dollar and its staking token sUSP. Pareto is used by institutional lenders, borrowers, curators, and integrators. - Type: Protocol - Sector: DeFi - Status: Active - Founded: 2019-07-01 - Profile: https://thegrid.id/profiles/pareto ## Products - [Idle](https://thegrid.id/profiles/pareto): Idle Finance helps users maximize capital efficiency and manage treasuries within DeFi by allocating funds across multiple yield sources for optimal returns. (Yield Aggregator, Inactive/Support Ended) - [Pareto Credit Vaults](https://thegrid.id/profiles/pareto): Pareto Credit Vaults facilitate institutional on-chain lending through smart contract-based credit facilities connecting vetted borrowers with liquidity providers. The system enables curators to structure customizable loan terms including fixed or variable rates, redemption cycles, and tranche configurations while automating interest distribution and fund utilization tracking. Borrowers receive capital for strategies including market making, derivatives trading, and arbitrage, while lenders earn yields through direct credit exposure with KYC-verified counterparties and curator oversight. (Decentralised Borrowing & Lending, Live, Main Product) ## Assets - [IDLE (IDLE)](https://thegrid.id/profiles/pareto): IDLE is the governance token of Pareto, formerly known as Idle Finance. It is used to vote on protocol upgrades, treasury allocation, and strategic decisions for the credit marketplace. (Governance) - [Pareto USP (USP)](https://thegrid.id/profiles/pareto): USP is a synthetic dollar stablecoin minted by depositing USDC or USDS into Pareto Credit Vaults. It is used to provide institutional investors with exposure to private credit markets and can be staked as sUSP to earn yield from institutional lending strategies. Unlike traditional fiat-backed stablecoins that hold reserves in cash or treasuries, USP maintains its dollar peg through collateral deployed into vetted institutional credit facilities, with a protocol-funded stability reserve acting as a buffer against borrower defaults. (Stablecoin) - [Pareto Staked USP (sUSP)](https://thegrid.id/profiles/pareto): sUSP is a yield-bearing staking token representing staked USP on Pareto. It is used to earn yield from interest generated by Credit Vaults that lend to institutional borrowers performing on-chain and off-chain strategies. The interest paid is reflected in a higher sUSP price than plain USP, effectively creating an interest-bearing token, with sUSP holders covering losses by having their conversion price to USP reduced if borrowers fail to repay. (Vault Tokens) ## Links - [Forum](https://gov.pareto.credit) - [Documentation](https://docs.pareto.credit) - [Media Kit/branding](https://docs.pareto.credit/resources/media-kit) - [Blog](https://paragraph.com/@pareto) - [Governance](https://snapshot.org/#/s:idlefinance.eth) - [Main](https://pareto.credit) - [Twitter / X](https://x.com/idlefinance) - [Twitter / X](https://x.com/paretocredit) - [Discord](https://discord.com/invite/mpySAJp) - [Medium](https://medium.com/idle-finance) - [LinkedIn](https://www.linkedin.com/company/paretocredit) - [GitHub](https://github.com/idle-finance) - [Telegram](https://t.me/paretocredit) ## Legal This data is provided under two licensing models. Model 1 - open data. The open data core is licensed under the Open Database License (ODbL) — a copyleft/share-alike license allowing free use, modification, and sharing for any purpose. Attribution is required: include "Powered by The Grid" linking to https://thegrid.id wherever the data is used. 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