Darkness Finance has introduced to the world a new concept of a cryptocurrency, partly collateralized and partly algorithmically stabilized.
About Darkness Finance
Darkness Finance — the first fractionally collateralized stablecoin on the Cronos chain. DarkNess Dollar is a stablecoin with part of the supply, backed by collateral, and part by the supply algorithm.
The ratio of secured and algorithmic depends on the market price of the DarkNess Dollar stablecoin - DUSD. If DUSD is trading above $1, the protocol reduces the collateral ratio. If DUSD is trading below $1, the protocol increases the collateral ratio. DarkNess Dollar aims to be the first stablecoin protocol on the Cronos chain to implement the design principles of both fully backed and pure algorithmic stablecoins.
The DarkNess Dollar protocol has two native tokens DUSD and NESS - plus DARK from DarkCrypto:
| 1 | DARK — the main utility token of DarkCrypto Finance and DarkVerse. Its role is similar to that of NESS, providing I/O as a system provision. |
| 2 | NESS (DarkNess Dollar Share) — an algorithmic token that earns commissions, income and excess collateral value. |
| 3 | DUSD (Dark Dollar) — a $1-pegged stablecoin, partially backed by collateral, such as USDC, USDT and DAI and partially algorithmically backed by DARK and NESS. |
The ratio of collateralized to algorithmic, the so-called Collateral Ratio (CR), depends on the market price of DUSD. Initially, the CR is 90% and the protocol adjusts the provisioning ratio once per hour in 0.25% increments. When DUSD is at $1 or higher, which means that the market demand for DUSD is high, the system should be in decollateral mode, reducing the collateral ratio to a minimum of 70%. When the price of DUSD is below $1, the feature increases the margin, up to a maximum of 95%.
More about defi app
All DUSD tokens are fungible with each other and are entitled to the same share of collateral, regardless of the collateral ratio they were issued with. Users can use a combination of stable (USDC + USDT + DAI) and Darkness (DARK + NESS) collateral, according to the collateral ratio for DUSD minting.
Compared to popular AMMs like UniSwap, PancakeSwap or VVS.Finance, DarkNess Swap offers:
- 10 times lower swap fee;
- slippage is more than 100 times less.
This highly efficient asset swap ensures maximum efficiency with virtually zero capital loss. Initial stable assets to trade include USDC, USDT and DAI tokens (3stables pool).