FAQ
What is StableUnit DAO?
StableUnitDAO is a decentralized autonomous organization (DAO) governed by all the holders of the SuDAO token and the holders of the SU DAO NFT Passeport. DAO members have voting powers to control and govern every single aspect of the protocol.
What is the StableUnit Foundation?
Currently, DAOs do not have a formal legal structure, the BVI: StableUnit Foundation was established as a non-profit organization designed to represent StableUnitDAO in official matters. The StableUnit Foundation has no shareholders and cannot pay dividends to its members.
Its purpose is to provide a vehicle by which StableUnitDAO can sign a contract or hire a company for services the DAO may require.
How and where do you generate yield and how do you distribute it?
Yield is generated through a diverse revenue stream. This revenue stream is composed of:
The lending fees the protocol earns when a CDP is opened. the loan can be created against positions locked in yield optimizers.
Upselling LSTs, LRTs, and LPs from yield optimizers to non-DeFi-savvy users.
Liquidations of CDPs through the StableUnit state-of-art liquidation systems.
What does this income depend on?
Each revenue stream of the StableUnit protocol is expected to perform better in specific market conditions.
The lending fees would depend on USDPro’s demand. The higher the demand, the higher the fees.
The yield from upsells would depend on the amount of collateral switched to a yield-bearing asset (e.g., ETH to RETH-WETH LP on Aura) by users through the "Yield Boost" 1-click solution, as well as its respective APY.
Liquidations on the other hand depend on the occurrence of the event. In other words, the more liquidations you have, the higher the revenue from this part of the protocol.
Regarding DeFi and the yield generation process, who manages the risk?
The system is trustless, no-one including DAO has access to the user's funds.
The system risk parameters can be changed via "Constitutional voting" where both Erc20 and Erc721 reach a consensus.
The yield is determined automatically by the token contract, there's no involvement of any administrator or the DAO.
What happens to USDPro if the market drops significantly and there is a large number of liquidations?
If the market abruptly crashes, the CDP might not be enough to protect the stablecoin’s peg. StableUnit has peg protection mechanisms that prevent system from the crash in the wide range of scenarios.
Why are liquidations permissioned? is this for MEV resistance?
Access to liquidation is exclusive to one random staker only for the first few blocks. Please read MEV-resistant liquidation module for more details. The overall philosophy is similar to what ETH 2.0 uses for PoS.
Who is behind StableUnit? (or who built StableUnit)
StableUnit was founded by a world-class team of crypto native supercoders and early employees of popular DeFi apps. Core team members developed smart contracts that surpassed $1 billion in stablecoin volume and are now disrupting stablecoins and the future of money.
What chain(s) will you be on?
The system supports any EVM-compatible chain, current DAO contracts are deployed on Polygon.
How and where will you source liquidity and what's your target DEX?
The core team built a $150M TVL stablecoin-DEX before, these LPs are our primary target for liquidity sourcing.
I read white-paper v2, but didn’t understand part X
Whitepaper v2 describes only the algorithmic stablecoin part and doesn’t cover the over-collateralization model at all.
StableUnit v3 is an over-collateralized stablecoin inspired by v2 but technically is very different system. Please refer this documentation over whitepaper.
How can I be involved in the StableUnit DAO?
Join the telegram, and introduce yourself by sharing more about your experience and background.
Meet the community and the team to discuss the future of StableUnit and get your free DAO NFT.
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