Bitcoin cannot be used as everyday cash, a store of value, or international unit of account because of its volatility. StableUnit solves this problem with a completely decentralized cryptocurrency. It’s fully backed by crypto collateral while the system is small, and utilizes multiple layers of black-swan resistant mechanisms to maintain a stable price..
In normal market conditions the price is stable because traders will buy SU when the price is below $1, knowing they can sell those SU to the stabilisation reserve instantly at $1 for profit, which drives the price back up. When there is unusual volatility, REPOs are available to buy with SU that can be redeemed for SU + interest when the reserve has been replenished – incentivising people to push the price back up during market shocks. If there is too much supply pressure for REPOs to handle, then DAO tokens will be created and used to replenish the reserve at the cost of DAO token holders. As a last resort, people will be incentivized via interest to lock up their funds.
[ Description of the methodology will be added soon.]
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