1.3 KiB
DefiDollar (DUSD) is a stablecoin that uses DeFi primitives to stay close to the dollar mark. DUSD provides an avenue for diversifying your stablecoin holdings to hedge against an event where the underlying stablecoins e.g Tether (USDT), DAI deviate from their peg.
Governance
The DFD token will be used to make critical protocol decision like the following:
- Whitelist & remove peaks
- Assign peak ceilings similar to the ones in Maker Vaults to balance the index
- Fine tune parameters like redemption fee within a peak
- Decide on the distribution of the protocol income
Protocol Backstop
DFD will be called in to act as the ultimate backstop against volatility. Similar to the fashion in which MKR acts as the last line of defence for DAI. There are other ways the protocol is protected against volatility and which will be discussed in an upcoming post.
DFD tokens will grant the holders the right to participate in the above protocol governance process. The transition to governance will be gradual and shipped alongside some of the key features of the protocol.