Quick start
The team decided to build on Solana for a number of reasons. Our team's deep knowledge of crypto systems, our competency in Rust and the overall speed in comparison to Ethereum. Additionally, from a user's perspective, we believe that Solana offers the best upside for them to experiment with new innovations in Defi 2.0. With low transactions fees and high speed, users can effortlessly use the financial products they are told were built for them. Solana allows us to serve all, with the dynamism the people expect from Defi 2.0. Without technology such as Solana as our base layer, innovations such as Block Rebasing would not be possible.
Each $UPS is backed by X UPFI (Stablecoin peged with 1 $USD). Because the treasury backs every $UPS with at least X UPFI, the protocol would buy back and burn $UPS when it trades below X UPFI. This has the effect of pushing $UPS price back up to 1 UPFI. $ could always trade above X UPFI because there is no upper limit imposed by the protocol. Think pegged == X, while backed >= X.
The value of X UPFI will be decided by GOV DAO later. We have a basis to dream that is 1 UPFI
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You might say that the $Ups floor price or intrinsic value is X UPFI. We believe that the actual price will always be X UPFI+ premium, but in the end that is up to the market to decide.
At a high level, GOV consists of its protocol managed treasury, protocol owned liquidity, bond mechanism (minting), and high staking rewards that are designed to control supply expansion. Bonding in the "Bond" page generates profit for the protocol, and the treasury uses the profit to mint $ and distribute them to stakers. With LP bond, the protocol is able to accumulate liquidity to ensure the system stability.
To put it simply - Buying UPS and staking is good for you, great for UPS and fantastic for everyone in the community as a whole.
Projects like OlympusDAO (OHM) explain this through the expression (3,3), where (3,3) represents the most optimal game theory of staking between 2 separate parties. When the protocol undergoes rebase, stakers will receive UPS proportionate to what they have staked over time. If everyone stakes, it creates a win-win situation that benefits everyone. If you are wondering what to do with your UPS, stake it
Last modified 1yr ago