Stable Finance — an algorithmic stablecoin protocol, pegged to the price of 1 USDC. The underlying mechanism of the protocol dynamically adjusts the supply of the Stable, raising or lowering its price relative to the USDC price.
Like Tomb, Stable Finance is a multi-token protocol that consists of the following three tokens:
- Stable ($STABLE),
- Horse ($HORSE),
- Horseshoe ($HORSESHOE).
One of the main drawbacks of past algorithmic tokens was the lack of use cases, leaving no good reason for anyone to want to use or hold them.
The STABLE token is intended to be used as a medium of exchange. The stability mechanism, built into the protocol, aims to maintain Stable's peg to $1 in the long term.
HORSE (SHARE) — one way to measure the value of the Stable protocol and shareholder confidence in its ability to keep Stable close to anchor. During the epoch extension, the protocol releases a Stable and distributes it proportionally to all HORSE holders who have staked their tokens in SILO. HORSE holders have a voice (governance) on proposals to improve the protocol and future use cases in the sustainable funding ecosystem.
The primary mission of HORSESHOE (BONDS) - to help to drive change in stable supply during the shrinking era. Swapping Stable for HORSESHE burns Stable tokens, taking them out of circulation (deflation) and helping to restore the price to 1 USDC.
All holders can exchange their horseshoes for Stable tokens if there is a positive Stable balance in the treasury, which usually happens when the protocol is in epoch extension periods