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TiUSD Stability Mechanism
reorders and risk reserve
The core of reserve assets endorsed decentralized stablecoins hinges on the market circulation shall consistently reflect actual market demand. Besides, as a stablecoin pegging to $1, for the most time, the currency price should stay at $1 enhancing the users' trust. Therefore, the most straightforward idea occur to us: One Protocol can issue stable assets at a price of no less than $1 and repurchase stable assets at a price of no more than $1. The whole fund obtained from the issuance or sale of assets will be sent to Protocol Reserve Value. The Protocol Reserve Value bears sufficient funds when users redeem or repurchase assets with issued stablecoin. Thus, the protocol can maintain the price at $1 at any time to increase the user's sense of trust in the Protocol.
Last modified 11mo ago