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Value Set Dollar (VSD) is an algorithmic and partially collateralized stablecoin that combines features from ESD V2, BASIS, and FRAX. It operates using an elastic supply model to maintain stability: during expansion, new tokens are minted and sold, rewarding bonded VSD holders and settling protocol debt. During contraction periods, VSD can be burned for a premium or redeemed from its partial collateral reserve.
VSD ensures stability through an elastic supply model that adjusts according to market conditions. It maintains partial collateralization during expansions by auto-selling newly minted tokens to swap pools and offering rewards to VSD holders. Security and governance are enhanced by merging DAO and LP governance, with Bonded LPs providing liquidity and having significant governance stakes.
Value Set Dollar offers a unique balance of algorithmic and collateralized backing, improving upon previous models like ESD V2, BASIS, and FRAX. The elastic supply model allows for adaptive responses during market volatility, providing stability. Additionally, VSD's governance, led by Bonded LPs, ensures participants who have the most at stake steer the protocol, enhancing security and decentralization.
VSD improves upon its predecessors by combining their key features while addressing core issues they faced, such as stability during market contractions. It uses a partially collateralized model with an elastic supply system. The merging of DAO and LP governance ensures that participants with significant investments have control, reducing the chances of sudden market dumps during contractions.
Value Set Dollar is governed by Bonded LPs who provide on-chain liquidity, thus having significant 'skin in the game.' These participants are responsible for key governance decisions, ensuring the protocol benefits from those with the most at stake. This governance model merges the strengths of DAOs and LPs to better handle protocol expansions and contractions.
Users experiencing issues with VSD transactions or stability should first check the status of market conditions and the protocol's current operational phase (expansion or contraction). Engaging with the community and governance forums can provide insights and solutions, as Bonded LPs actively participate in decision-making processes. For technical issues, consulting project's documentation or reaching out to support channels is recommended.
Value-backed Stable Decentralized
Value Set Dollar (VSD) is an algorithmic and partially collateral stablecoin with features from ESD V2, BASIS, and FRAX. It employs an elastic supply model to maintain stability by minting new tokens during expansion and burning tokens during contraction. VSD incorporates DAO and LP governance with Bonded LPs providing on-chain liquidity and significant governance roles to ensure decentralization and stability.
Value Set Dollar (VSD) is an algorithmic and partially collateral stablecoin with features from ESD V2, BASIS, and FRAX. It employs an elastic supply model to maintain stability by minting new tokens during expansion and burning tokens during contraction. VSD incorporates DAO and LP governance with Bonded LPs providing on-chain liquidity and significant governance roles to ensure decentralization and stability.
