For DOP/DOLLY holders
If you are holding DOP tokens, you can convert DOP tokens directly to DOPX tokens with 1:1 ratio on Dopple.Finance convert page.
Since a new KUSD is fractional-algorithmic, a new DOPX token has to be created with unlimited supply to make sure that all KUSD could be redeemed at $1.
Rest assured that we have taken all necessary measures to ensure that the circulating supply at any given time won’t go above the current emission rate for DOPX.
Here are some examples of these safeguards we’ve put in place:
- 1.The launch of DOPX will come with the reduction of the current emission rate by decreasing the future growth of circulating supply over time, resulting in a higher price point for all DOPX holders.
- 2.By fractional-algorithmic algorithm, the Growth Rate will adjust the collateral ratio early on to make sure it will require more stablecoins as collateral while minting, which implies that more stablecoin could be redeemed and fewer DOPX tokens have to be minted
- 3.The collateral ratio is updated as frequently as possible according to the automated mechanism that combines the price from oracle and the current growth rate, hence adjusting according to the market as quickly as possible.
- 4.There is the circuit-breaking trigger that we could use at all times to prevent a bank run, which would harm the entire ecosystem
From lessons learned at Iron, our latest release of KUSD and DOPX is specifically designed to protect investors’ investment from bank run situations.