BUCK Stablecoin — an asset-backed stablecoin with DAI as collateral, combined with a stabilization algorithm, using a community token. This hybrid system makes BUCK's capital efficient (without over-collateralizing DAI), truly stable and fully decentralized.
BUCK Stablecoin uses a fractionally collateralized model, which means that part of the BUCK supply is backed by a fully decentralized stablecoin. The provision of DAI and the supply portion of HERD is algorithm driven. This makes BUCK's capital efficient (no over-collateralization) and the price is really stable at $1.00.
HERD — a governance token that generates fees, seigniorage income and excess collateral value. All HERDs are minted as rewards under the liquidity program. HERD can also be created by adding a certain amount of DAI to the collateral pool.
The collateral ratio starts at 100%, which means that the user must enter 100% DAI as collateral, which is equivalent to the amount of BUCK they wish to mint. This collateral ratio will be updated hourly in 0.25% increments. You can create a BUCK by sending only DAI or only HERD. The system will automatically replace half of the given token with its paired token and then start minting.