Elastic Supply
Stable Price ~ Elastic Supply
Last updated
Stable Price ~ Elastic Supply
Last updated
$DUB operates on a unique mechanism compared to other tokens in the decentralized finance (DeFi) ecosystem. While most tokens' prices increase as the assets under management grow, $DUB maintains a constant value of approximately $1. This is achieved through constant adjustment of the money supply by smart contracts, which automatically update the balance of every $DUB holder's wallet in proportion to their holdings, reflecting the yield generated by the protocol.
Some key features of this mechanism are:
$DUB is 100% backed by other stablecoins, making it less challenging to maintain the peg to the dollar. The ease of minting and redeeming $DUB allows arbitrageurs to ensure the peg remains stable.
$DUB rebasing only increases the token supply, as the amount of $DUB minted is tied to the realized gains earned by the underlying strategies. Therefore, while the $DUB balance of token holders will never decrease, its value could potentially drop if there is a failure in the underlying systems.
The monetary supply of $DUB is updated in real-time, triggered by rebases that occur every 24 hours.
In summary, $DUB is a stablecoin that utilizes a unique rebasing mechanism to maintain its peg to the dollar, constantly adjusting its money supply to reflect the yield generated by the protocol. This innovative approach has resulted in a stablecoin that is highly reliable, making it a preferred choice for investors in the DeFi space.
