uAD Token (Dollar)

This section focuses on mechanics specific to the uAD product. All UBQ rewards quoted in this section are the rewards before the supply penalty, as explained in the UBQ Token Documentation.

UBQ Token

Price stability

Price stability pertains to mechanisms that aim to stabilize the token price, short of performing a full price reset. Those mechanics (in each group, e.g., below and above 1.00 USD) are active all at once unless explicitly specified otherwise.

Below 1.00 USD

<aside> 💡 BURN NOT ACTIVE AT LAUNCH

</aside>

Incentives for traders. As the token price drops below 1 USD, traders on the 3CRV pool will be incentivized to buy the tokens and disincentivized to sell the token. Incentivization is achieved by burning a percentage of all uAD sold and issuing governance tokens (UBQ) in equal proportions for all uAD bought. Those incentives grow larger the further the price of the token falls below 1.00 USD. We define the function (in terms of percentages) as:

$$ (1-Price) *100 $$

So essentially:

Coupon/Auto-redeem minting. As the price falls below 1.00 USD, the system will begin issuing debt in the form of:

Token List

The exact mechanics of each of those are specified in the links above.

Above 1.00 USD