Find New｜Debaseonomics: Algorithmic Stablecoin Architecture

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Debaseonomics is creating a new algorithmic stablecoin architecture. Rather than having only one mechanism designed to determine how the stablecoin is pegged, Debaseonomics allows for various mechanisms to be created and deployed according to mechanism-specific needs in different situations.

After all, there is no one-size-fits-all monetary policy solution. The current model defect of algorithmic stablecoins is that they are not dynamic enough. A mechanism that works great for a bull market may not work for a bear market. Therefore, various monetary policies are required. In Debaseonomics, they are called stable pools, and each pool has its own stable coin, introducing constant dynamic coin engineering into the whole system.

Debaseonomics is not focused on changing the token supply to maintain prices (monetary inflation), but on changing the value that can be added to the system (price inflation). Imagine if a country's currency was managed through economic growth and price inflation. In turn, this translates into economic growth for the ecosystem.

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Its main feature is to have a flexible and dynamic monetary policy, and to carry out continuous token engineering design according to the ever-changing system.

Previously, Debaseonomics was pegged to the US dollar with a 5% tolerance float by adjusting the supply side. This means that when the price of the DEBASE token is between 0.95 and 1.05, nothing will happen. When it falls below 0.95 or above 1.05, it rebalances the supply.

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Among the mechanisms currently being phased out, Debaseonomics also includes a Treasury-like mechanism. This is to allow users who currently hold DEBASE tokens to buy future DEBASE tokens and earn interest. This is similar to the performance of government bonds.

Looking ahead, Debaseonomics seeks to build a more general monetary policy model with dynamically moving components. This is to increase the added value of the system (price inflation), not just to affect the money supply (money inflation). In this mechanism design, tokens (collateral) are used for ordinary real appreciation (price inflation) before being added to the system.

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The DEBASE token is a reserve token with a flexible supply. The token can accumulate value from various stabilization methods, current and future mechanisms. DEBASE is not an algorithmic stablecoin. However, it can adjust the token supply to maintain flexibility and function as a reserve token for the entire ecosystem.

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When the price is above $1.05, the DEBASE supply changes. The protocol exploits this reflexivity to sell some new tokens in exchange for collateral that goes to the treasury. Therefore, there will be more reserves in the market to back the value of the token in circulation to maintain its price.

When the DEBASE token price falls below $0.95, the DEBASE token will be bought back by the reserve and destroyed. The drop in the price of DEBASE tokens is greater than that of the mortgage reserves, and the price of DEBASE tokens tends to be stable.

In order to determine the price of the anchor asset, Debaseonomics uses Uniswap’s Oracle protocol to query the price of DEBASE tokens to DAI every 24 hours, and introduces a 5% floating variable. Above or below this variable, the protocol will adjust the supply by itself.

Community recommendation can recommend different stable pools, which are decided by community votes, and then stable pools are introduced to improve the continuous dynamic management of token engineering. The community supports the stable pool by voting. Experts provide new and innovative ideas; the team codifies these ideas, which are executed by smart contracts. This is the best combination of man and machine working, taking advantage of each other's strengths.

DEGOV is the governance token in the ecosystem. Such systems require dynamic engineering support, which is accomplished through stable pools. DEGOV holders will use the token to vote on various stabilization methods to create a stabilization mechanism.

DEGOV holders can also share revenue with the protocol through voting. This is an incentive mechanism through which DEGOV holders can enjoy the fruits of the right decisions made to promote more cooperation among decentralized parties in the protocol.

Why do you need DEGOV? Because the protocol does not manage or adjust dynamically. Therefore, active-zce governance is required. This is similar to central bank governors voting collectively to make various decisions. Protocol management can now be carried out by DEGOV holders who freely buy and sell voting rights, rather than central bankers.

DEGOV is a governance token, while DEBASE is a reserve asset. The limited supply of DEGOV is used for protocol governance and value appreciation through stable pool voting. DEBASE, on the other hand, is a reserve currency that is regulated by the Ministry of Finance through a smart contract. The smart contract will mint coins when necessary, and destroy the tokens through the value-added income repurchase agreement.

dStable is a new stablecoin created through a new Stable Pool (SP4). The goal of SP4 is to create an ordinary monetary policy that can be designed dynamically. And DEBASE is used as a reserve token.

dStable is partially backed by reserve collateral with a capital efficiency of 67%. This capital efficiency is similar to that of on-chain collateralized tokens, with 150% over-collateralization. The capital efficiency of collateral is only 67%. Similarly, dStable has a reserve endorsement, and the mortgage rate is 67%.

Just like Maker, minters need to pay minting fees when they stake to support the creation of dStable tokens. With dStable, minters can also receive rewards generated by the protocol. This is part of the mechanism design to facilitate the growth of real economic value and to reward minters for supporting the system by creating dStable tokens.

Summary

Debaseonomics is a protocol with a common monetary policy that supports continuous dynamic token engineering. From a supply-side perspective, this is crucial to ensuring the robust growth of the ecosystem.

This new stable model creates real value and converts DEBASE and DEGOV tokens. As DEBASE continues to increase in value, the token's role as a reserve currency allows greater flexibility for different types of stable pool research. This value-accretive cycle ensures long-term continuous token engineering, which is the key to success.

Using these resources, other stabilization pools involving complex financial engineering and financial structures will be gradually created in the near future to form a robust and resilient model, similar to how central banks implement support for capital markets in other financial structures.

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