New Initiatives for kUSD

Liquidity Mining with StakerDAO

The STKR Token allows holders to vote on initiatives for StakerDAO to undertake.

Liquidity Pool

The Kolibri Liquidity Pool provides a backstop for oven liquidations which benefits users, and the Kolibri protocol

How it works

An Illustrated Example

- 1 XTZ is worth $5
- 1 XTZ may be exchanged for 5 kUSD on Quipuswap
- Alice has contributed 5 kUSD to the liquidity pool
- Bob has contributed 5 kUSD to the liquidity pool
- The pool has 10 kUSD total (5 kUSD + kUSD)
- The oven has 1 XTZ of collateral (worth $5)
- The oven has 3 kUSD of outstanding loans (worth $3)
- The oven's collateralization is thus 166%, below the required 200%
- Charlie pays .008 XTZ as a transaction fee
- The pool pays 3.21 kUSD to liquidate the oven (3 kUSD in outstanding loans + a 8% liquidation fee from the protocol)
- The pool receives 1 XTZ for liquidating the oven
- The pool pays 1% of the collateral to Charlie, sending him .01 XTZ to cover the transaction fee and reward him for using the pool
- The pool swaps the remaining .99 XTZ on Quipuswap for 4.95 kUSD (.99 XTZ * 5 kUSD per XTZ).
- Charlie spent .008 XTZ and received .01 XTZ
- The pool now contains 11.74 kUSD(10 kUSD to start — 3.21 kUSD to liquidate the oven + 4.95 kUSD from the swap)
- Alice and Bob’s QLkUSD now give them rights to the new value in the pool, and they may redeem their QLkUSD for 5.87 kUSD (11.74 kUSD / 2)

Benefits

Kolibri is a system of smart contracts on Tezos which issue kUSD, a trustless, algorithmic stablecoin that is collateralized to XTZ and soft pegged to USD.

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Kolibri

Kolibri

Kolibri is a system of smart contracts on Tezos which issue kUSD, a trustless, algorithmic stablecoin that is collateralized to XTZ and soft pegged to USD.

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