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What is Dynamic Set Dollar?

Dynamic Set Dollar (DSD) is an ERC-20 self-stabilizing decentralized censorship-resistant non-collateral backed USD stablecoin.

Video:https://bit.ly/33YqZnE

How is DSD different from other stablecoins?

For a more comprehensive overview of the differences between DSD and other stablecoins, please refer to this article.

DSD is a fully decentralized stablecoin that unlike centralized coins, e.g. USDT, has no 1:1 backing through a centralized USD treasury. To be highly capital efficient it does not use any collateral, like the main competitors DAI or sUSD. The voluntary elastic supply mechanic is different from Ampleforth (AMPL) and Based (BASED). …


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We are excited to introduce Dynamic Set Dollar: a next-generation elastic supply stable token that, by improving upon its predecessors through the integration of several novel features, is destined to become the first fully DeFi compliant stablecoin.

DSD uses the mechanics from several other projects and is mainly inspired by ESD, Empty Set Dollar. ESD set a strong foundation for being the first viable non-collateral backed stablecoin design. Yet, governance proposals and protocol changes negatively influenced its growth and did not meet the expectations of its early participants. …


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Background

The core mechanics of DSD to maintain the 1$ peg consist of supply expansion during a positive price deviation, and supply contraction during negative price deviation. Similar dynamics are implemented among nearly all algo stable coin designs, yet none of them has demonstrated a sustainable method of maintaining the peg.

This is mainly due to incentives being overly powerful to buy in above the peg to participate in supply expansions, but fairly weak to re-approach the peg once the asset price has fallen below.

Coupons have been proven to be a failed approach to recover the 1$ peg. This is…


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DSD has grown during the past 1.5 months at a remarkable pace. A vibrant community has been established, first integrations are in place and many community members have done outstanding things in order to push the project forward.

So far, the entire development around Dynamic Set Protocol has been self-funded by the core team. This has been a viable solution until now, yet given the size of the project, upcoming operations and the future vision, proceeding in that manner is not sustainable nor financially affordable anymore.

Now it is time for proper structures to come into place and to establish…


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The bootstrapping period can be considered as the initial kickstart period that brings DSD to a minimum supply from which it can organically grow.
During bootstrap, the supply growth per epoch is fixed at 4.5% per epoch for 150 epochs.
The bootstrapping period was meant to get early community members on board, seed the liquidity pool and to implement important DIPs (Dynamic Improvement Proposals) to help DSD become a widely adopted stablecoin in the future — all of that has been achieved.

Now the question is, what happens after epoch 150?

This quick explanatory article should answer all your related…


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Our goal is for DSD to become a widely adopted stablecoin in the DeFi space. Since DeFi market participants can benefit greatly from a censorship-resistant, non-collateral backed USD stablecoin, we believe our goal to be worthwhile.

DSD becoming a widely used stablecoin across DeFi can only be achieved in a collaborative manner with the community. Of course, the DSD protocol itself is the primary driver of community collaboration. It is designed to align financial incentives towards the mutual benefit of all participants (see this DSD overview and our FAQ for a closer look at how exactly this is achieved). Yet…


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Overview

Stable coins have long played a pivotal role in the crypto ecosystem. Tether made it possible for centralized crypto exchanges to interoperate, stabilizing the frequent disparities in across exchange prices. Now, a variety of stablecoins provide a solid foundation for the growth in the nascent DeFi space. It is arguable that without stablecoins as a safe, non-volatile asset, the massive price action in DeFi would have scared away many market participants, limiting the adoption rate that DeFi has experienced.

Dynamic Set Dollar

The first fully DeFi compliant USD stablecoin.

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