The system uses a TWAP function to sense the price of VADER in USD allowing for the burn-to-mint of the USDV stablecoin. The Vader Protocol AMM uses USDV as the base asset, which drives liquidity and demand of the stablecoin from launch. Part of the fee it generates from its operations funds a reserve to provide for Impermanent Loss Protection and allows the minting of Synthetic assets. USDV becomes increasingly collateralized over time as the protocol expands its treasury from Bond Sales and fees.
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