# Stablecoins

#### *Target Allocation: 5–10% of USD\* collateral*<br>

A portion of USD\*’s backing is held in fully liquid, high-quality tokenized stablecoins such as **USDC, USDT, and PYUSD**. These assets serve as the foundational layer of liquidity and stability within Perena’s portfolio.<br>

**How It Works**

* **Fully Redeemable Tokens**\
  These are fiat-backed stablecoins issued by regulated entities (e.g., Circle for USDC, Paxos for PYUSD) and are redeemable 1:1 for U.S. dollars.
* **On-Chain Liquidity**\
  These assets can be instantly moved, traded, or re-allocated across protocols with minimal slippage or downtime, enabling active portfolio management and seamless user redemptions.
* **Reserve Buffer**\
  Liquid stablecoins act as a buffer for volatility or redemption spikes, ensuring that Perena can respond quickly without disrupting longer-term positions.<br>

This allocation helps Perena:

* Maintain **liquidity for redemptions and strategy rotation**
* Anchor portfolio stability with **transparent, fiat-backed assets**
* Reduce dependency on yield-only strategies by balancing safety and flexibility