DawnStar Finance - an algorithmic pegged token with features, designed to improve the Polygon ecosystem.
How does DawnStar Finance work?
The first algorithmic stablecoin on Polygon, backed by real yield and pegged to the price of 1 MMF. $DSF is pegged to the price of 1 MMF through unique and sustainable strategies. $SOLAR functions as a governance token for the DawnStar Finance platform.
Key differences are as follows:
| 1. | The DSF token will be algorithmically linked to the MMF (Polygon) token. |
| 2. | Primary liquidity will be stored in DSF-MMF LP pools: this creates a huge lock on MMF tokens in liquidity, providing more utility for MMF tokens. |
| 3. | Supply growth algorithm, based on circulating supply rather than total supply. This means that there is an expansion of the sentence that modulates in a much more meaningful way. |
| 4. | Tokens, that have been burned or redeemed, do not count against supply growth, which better reflects the true demand for the DSF token. |
The DSF token is intended to be used as a medium of exchange. The stability mechanism, built into the protocol, aims to keep DawnStar tied to 1 MMF token in the long term.
Solar Shares (SOLAR) — one way to measure the value of the DawnStar protocol and shareholder confidence in its ability to keep DSF close to anchor. During the epoch extension, the protocol issues DSF and distributes it proportionally to all SOLAR holders who have staked their tokens in Eclipse. SOLAR holders have a say (governance) in proposals to improve the protocol and future use cases in the DawnStar Finance ecosystem.
MOON tokens
The primary purpose of the Moon Bond (MOON) — to help to drive change in DSF supply during the shrinking era. When the TWAP (weighted average price) of DSF falls below 1 MMF, MOONs are released and can be bought with DSF at the current price. Swapping DSF for MOON burns DSF tokens, taking them out of circulation (deflation) and helping to restore the price to 1 MMF.
You can buy MOON, if available, via PIT on Savanna Finance. Anyone can buy as many MOONs as they want as long as they have enough DSF to pay for them. There is a limit on the number (3% of DSF's current circulating supply) of available MOONs during cutback periods and they are sold on a first come, first served basis.