Everything you need to know about dfxStables, the first addition to the DFX Innovation zone.
In the onset, we will launch with our first stablecoin dfxCAD which is a hybrid stablecoin for the Canadian dollar. dfxCAD will start off at 95% collateralized by its fiat-backed counterpart, CADC and 5% DFX tokens.
Based on the peg of dfxCAD, the smart contract can change the collateralization ratio by up to 1% per day. If dfxCAD is trading at a premium, the collateralization ratio of CADC will be decreased. If dfxCAD is trading at a negative premium, the collateralization ratio will be increased.
The lower the collateralization ratio is for the stablecoin, the more efficient it becomes as it requires less of the fiat-backed stablecoin to exist, providing higher utility for the stablecoin.
Incentives will be provided to those that mint dfxStablecoins within the Curve community to ensure healthy supply of the stablecoin and provide utility to the dfxStablecoin and the DFX token.