Article Summary, Automatically Generated By AI
Summary of WEMIX Dollar
Key Points
- WEMIX$ is a stablecoin with 100% USDC collateralization.
- WEMIX$ functions as a store of value, unit of account, and medium of exchange.
- AMA (Authorized Mint Access) protocol is responsible for issuing WEMIX$.
- WEMIX$ maintains stability through pegging with USDC and on-chain reserve.
- DIOS (Dollar In and Out Stabilizer) prevents depegging through TIP & TOP protocols.
Numbers and Figures
- 100%: USDC collateralization for WEMIX$.</li
Introducing WEMIX Dollar: A New Era in Digital Currencies
Introducing WEMIX$: A Revolutionary Gaming Token
WEMIX$ is a novel stablecoin, fully collateralized by 100% USDC, designed to facilitate seamless value circulation within the comprehensive, service-driven WEMIX mega-ecosystem. As a complementary stablecoin to WEMIX Coin, WEMIX$ serves as a reliable store of value, a standardized unit of account, and a versatile medium of exchange.
The Unwavering Stability and Unparalleled Transparency of WEMIX$
Upon the inaugural issuance of WEMIX$, an equivalent amount of USDC is deposited into the Treasury, and a corresponding amount of WEMIX$ is issued in tandem. The protocol governing the issuance of WEMIX$ is dubbed AMA (Authorized Mint Access), which initially grants exclusive permission to the WEMIX foundation. As the ecosystem grows and stabilizes, AMA will incrementally extend partnerships to additional entities. WEMIX$ maintains its stability by pegging to USDC, backed by an on-chain reserve. The triumvirate of the Treasury, MINT, and DIOS collectively contributes to the stabilization of WEMIX$ within the ecosystem. Notably, the total circulation of WEMIX$ and USDC in the Treasury will perpetually remain in equilibrium.
Mitigating Volatility: The DIOS (Dollar In and Out Stabilizer) Solution for Price Stabilization
The Dollar In and Out Stabilizer (DIOS) is a sophisticated protocol designed to maintain the stability of the WEMIX$ price, effectively preventing depegging through the strategic deployment of TIP and TOP, which work in tandem to adjust the price of WEMIX$ in response to fluctuations that may have caused it to deviate from its peg.
TIP (Treasury in Protocol): A Novel Approach to Digital Asset Management
The TIP Protocol serves as a safeguard against value depegging, ensuring the stability of the ecosystem amidst growth and increasing demand for WEMIX$. As the ecosystem expands and the demand for WEMIX$ surges, the price of WEMIX$ rises, leading to depegging in the Master Liquidity Pool (MLP), specifically in the USDC/WEMIX$ exchange. In response to this scenario, DIOS implements the TIP (Treasury-In-Protocol) mechanism. Upon TIP execution, the MINT contract facilitates the exchange of WEMIX$ in the MLP for USDC. Given the higher value of WEMIX$ compared to USDC, one or more USDC is swapped for 1 WEMIX$. The swapped USDC is subsequently deposited into the Treasury, while the remaining WEMIX$ is transferred to the DIOS Reward Pool.
TOP (Treasury Outbound Protocol)
The TOP Protocol serves as a safeguard against value depegging in the event of ecosystem contraction. Should the ecosystem experience a downturn, triggered by factors such as decreased demand for WEMIX$ or a potential attack, depegging may occur in the Master Liquidity Pool (USDC/WEMIX$ pool), resulting in a decline in the WEMIX$ price. In such a scenario, DIOS will initiate the Treasury-Out-Protocol (TOP), whereby USDC is withdrawn from the Treasury and exchanged for WEMIX$ in the MLP. Given the disparity in value between WEMIX$ and USDC, 1 WEMIX$ equivalent to 1 USDC is transferred to and burned in the MINT contract, while the remaining WEMIX$ is allocated to the DIOS Reward Pool as seigniorage. Under all circumstances, the DIOS protocol ensures that the equivalent amount of minted WEMIX$ and USDC is maintained in the reserve.
TIP & TOP Exchange Rate: Unlocking Seamless Transactions
TIP & TOP is automatically triggered by the smart contract when the MLP swap rate deviates by a predetermined percentage, and remains active until the rate stabilizes at 1. This mechanism is perpetually executed in predetermined amounts through an algorithm, thereby eliminating losses resulting from slippage or price impact. The specific parameters of this mechanism are not publicly disclosed to prevent external threats, such as front running. Moreover, these parameters are subject to change in response to shifting market conditions.