Stablecoin Peg stability

The stablecoin peg stabilisation depends on managing the supply and demand of USDA+. The stablecoin supply in Autonomint caters to different type of user demands, giving us multiple options to manoeuvre by changing the variable accordingly. Some of the demands are

1. Users looking for highly capital efficient stablecoin liquidity against their crypto assets

2. Users looking to hedge their collateral volatility at a lower cost

3. Users or businesses looking for stablecoin liquidity for their working capital needs without worrying about collateral getting liquidated

We will be using a combination of parameters to influence supply and demand of stablecoins.

Managing Stablecoin supply in the Primary market

1. Change in borrowing APY - Stablecoin supply can be managed through change of borrowing fees charged to users on stablecoin loan.

2. Change in Option fees - Stablecoin supply can be managed through change of option fees charged for volatility hedging and downside protection of collateral.

3. Change in %age Downside protection - Our downside protection %age depends on the collateral volatility, dCDS total deposits and peg deviation. We will be able to offer higher or lower downside protection to projects to influence supply to counter peg deviation.

4. Change in ABOND yield accrual - We can increase or decrease the ABOND assets minted by changing the ABOND value premium on top of face value. The yield accrued on ABOND assets can also be increased and decreased to manage the stablecoin supply.

5. Changing the proportion of token rewards for borrowers - Users having a stablecoin loan can have their downside protection covered in tokens from dCDS pool. The proportion of tokens sent can be changed to influence supply of stablecoins.

Managing Stablecoin supply in the secondary market

We will use the concentrated liquidity pools to range bound the stablecoin price to a small range.

Managing Stablecoin Demand

1. Change in Option Fees offered - Change the proportion and %age of option fees charged to users depositing funds in dCDS to influence demand

2. Change in %age of Downside protection offered - By changing amount of downside protection to be given to borrowers, we can influence user participation in dCDS.

3. Acceptance of token %age in dCDS - Users can also deposit tokens they hold in dCDS and earn yields on top of the same. By changing the proportion of token %age being accepted and risk premium applied on tokens, we can influence the demand from users.

4. ABOND offered - Protocol will initiate ABOND minting at particular periods of time when the USDA+ price falls below $1. Users can then redeem USDA+ for ABOND asset which can be sold for immediate profits or can be held to earn yields with flexible maturity.

5. Immediate re-deemability - Users can re-deem USDA+ to get USDT immediately in case the price falls below $1

Above are same of the ways through which stablecoin demand can be influenced.

Stablecoin Re-deemability

Utilizing USDT and other stablecoins deposited in dCDS for immediate re-deemability

The dCDS users can deposit a combination of USDA+, USDT and other stablecoins in the dCDS module. The stablecoins deposited is utilised as a backing to mint USDA+ at 1:1 ratio by the protocol and is utilised to offer downside protection to the borrower collateral. Users can re-deem their USDA+ against the USDT deposited. Three types of users will be interested in this module

• Users looking for immediate re-deemability for USDA+

• Users looking to re-deem back to a another stable currency like USDT for conversion to cash immediately

• Users looking for arbitrage gains in case the price of USDA+ deviates from the peg.