VuFi Staking
When VuFi is in a state of disruption, and its market price does not perfectly reflect the Consumer Price Index of the inflation of the US Dollar, it must reconcile to reach a state of equilibrium. This is achieved through programmatic expansion / contraction of the total VuFi supply, made possible through an elastic supply protocol. These supply expansions or contractions are called rebases.
At the highest level, a rebasing protocol exists to do one thing: correlate a synthetic asset’s price perfectly with the price of its underlying asset. This is achieved by adjusting the synthetic asset’s supply until its market price ( reaches its target price ( the price at which the synthetic asset is at equilibrium with its underlying asset.
However, rebasing cannot directly correct the market price. Rebasing can only influence price corrections. Market actors must respond to rebases for price to correct.
The rebase mechanism will be less volatile depending on the cumulative number of new issues. To stake and receive rewards users can move their VuFi tokens to the pool when the token price is either greater than (>) or less than (<) the target price.
To become a part of our utility token, you can deposit to contract and get rewards weekly of Vufi Shares. You could even withdraw or claim any time!
Staking users can move to the next stage of staking and earn more rewards when price is above target, or below it.
Price target above
Protocol will mint tokens when price will be above and deposit to bonding protocol with supply not grater than 0.25% per cycle
with fallowing calculation of rate:
Price target bellow
Then protocol stabilizes price with automatically buying bonds using pool balance. With that the maximum limit 1% per day, consider fallowing formula:
On the event when price is above the target, will sell bonds.
Most stablecoins aim for achieving a 1:1 stability ratio by being pegged to a fiat currency. However, this approach does not protect long-term holders from the effects of inflation. Vufi token adopts a different method to measure inflation via the Consumer Price Index and apply it to the target price. By doing this, we achieve better stability and predictability in pricing.
Theoretical Example:
Alice bought VuFi in 2015 at a price of $1 for the amount of 100 tokens. At the time of purchase, the CPI was around 233.707 She holds the token till 2021 and today the CPI is around 273.003 Can calculate that her 100 tokens are now worth around $116.81
Last modified 1yr ago