OSD
OSD is short for One Stable Dollar
Last updated
OSD is short for One Stable Dollar
Last updated
There have been many experimentations on algo stable assets, some of the widely known projects include: Olympus DAO, Fei, Float, Reflexer,Ampleforth๏ผAMPL), Empty Set Dollar๏ผESD), Basis Cash(BAC/BAS), Frax(FRAX/FXS). None of above projects have made a real impact due to either sharp fluctuation in price or inability to scale.
OSD is the stable coin introduced by OT, OSD works like the glue that holds the protocol together. OSD is a unit of account token for all assets listed on OT. OT solves the capital inefficiencies of liquidity pool pairs(that traditional AMMs such as Uniswap, Sushiswap, etc have) by grouping deposited tokens into a virtual pair with the OSD. This means that liquidity providers only need to deposit one token to the pool instead of two. OSD is backed by all the assets in OT pools that have a positive OSD balance and OT treasury.
When a user creates a new pool, they need to set a starting price for the asset in $. This means that every asset in OT pools expresses their value in OSD. Therefore trading works by forming a similar pricing curve to Uniswap except while they use the ratio between two tokens, we have a starting price and a would be price.
A true value stable coin soft-pegged to US Dollar and at same time maintain a relatively stable value(many algo stable coin projects turn out to be highly unstable) so that OSD can be used as a store of value as well as a medium of exchange.
Users can swap WBTC, ETH and any supported asset to OSD. Users can also borrow OSD from other markets that supports OSD lending and borrowing.
The mint of OSD happens whenever sellers sell non-OSD assets(when OSD balance is 0 for select pools) or when users borrow OSD using supported assets as collateral.
When users withdraw liquidity, they will receive OSD (as well as originally deposited asset) if there is a positive OSD balance in the pool.
All assets on OT are paired against OSD, OSD balance in each pair is 0 before anyone buy the token with OSD or sell into OSD for select pairs, liquidity providers don't deposit OSD into any pool. OSD is technically backed by all the assets in the pool. Please note that OSD balance of Ordinary Pools cannot go below 0. For Select pools, when OSD balance goes to 0, users can still sell tokens to treasury in exchange for OSD.
Users can also borrow OSD by using supported collateral such as BTC, ETH, USDC, USDT, etc.
You can mint OSD by trading other assets directly into it, you can also swap OSD into any other assets on OT. You can stake OSD to earn yield in the form of OT token and protocol revenue distribution.
