DeFiBox Implement USN Annual Rate Automatic Adjustment Mechanism
Article is about Defibox. Defibox Implemented a USN annual rate automatic adjustment mechanism.
USN, a staking stable coin based on EOS Blockchain originally owned by Danchor Project.
Just like we have different stable coins on different blockchain networks, that is the same way we have a stable coin on the EOS chain too. USN is a decentralized stable coin protocol based on EOS and it is pegged with USD, main goal of this coin is to help unlock the full potential of the EOS Defi market.
Having a stable coin on any chain is a good way to make users have faith in the platform.
Now, about USN stablecoin, it has suffered some negativity which includes people dumping the USN via USN/USDT pool, and this, in turn, affects the price of USN. Due to this, Defibox decided to raise the USN annual fee to reduce the USN circulation which will be a good way for USN price to grow.
Several proposals have been made and now the automatic adjustment mechanism has been launched, read on to see how it works:
- When the 24H USN exchange rate is less than $0.98, the system will automatically add up 2% on the annual rate of USN.
- And when the 24H USN Exchange rate is more than $1.02, the system will also automatically deduct 2% on the annual rate of USN.
The automatic adjustment mechanism is beneficial to the protocol and the users, it is more transparent and users can have anticipation and clue of how the annual rate will change, and the most important of all is saving the community the time to keep voting on the annual rate change.
For me, I think this implementation is one of the best decision to make, having an automatic adjustment mechanism for USN is cool to help the price of USN as EOS Stablecoin, users of the platform will have faith in the system and also not need to worry about proposals to change anything relating to USN token.