DUS | USD Reference Asset

USD hedge and DeFi price oracle

What is DUS?

DUS is a DUCA Backed Asset. DUCA Backed Assets are tokens designed to have a value pegged to a FIAT currency and are 120% backed by DUCA. DUS is our USD-pegged stablecoin.

Why do we need this?

  1. DUCA has initially no recognisable value as a reference value in the same way FIAT does. This makes FIAT reference values far more practical in finance than a new and unknown value. A new reference value creates friction in existing FIAT-based structures due to the differences in Exchange Value which, besides the practical aspects, also contain risk.

  2. DUCA-Backed Assets harness the value of DUCA within a FIAT reference value whilst adding an additional layer of over-collateralisation.

  3. DUCA-Backed Assets provide a hedge or protection against value depreciation of that pegged FIAT currency. For DeFi these assets provide a high-quality price oracle free from the need and dependency on an oracle price feed.

How does it work?

DUS will be pegged to USD. The referenced currency (USD) will not be present as actual collateral, nor any government bonds, FIAT-denominated securities or equivalents. DUS will have a pegged exchange value which means that this value is not established through the presence of non crypto assets or crypto assets from outside the DUCA Stable Value Protocol. The Protocol always values DUS at its Exchange Value regardless of the Market Value.

DUCA can be swapped for DUS against its fixed exchange value and has a guaranteed over-collateralisation of 20% that is safeguarded by the Stability Pool. The supply of DUS will be elastic and has no maximum.

DUS does not in any way represent a legal claim or ownership of DUCATA, nor is it a collective investment scheme of any kind, nor does it represent any voting or governance rights or any form of tokenisation model. DUS cannot be redeemed for FIAT, BTC or any other cryptocurrencies or real assets with DUCATA. Neither is DUS backed by collateral or a reserve that is managed by DUCATA.

DUS

DUS is censorship-resistant. Addresses containing DUS can’t be frozen or confiscated. Only those who have access to the wallets via the private keys control DUS.

  • Token: ERC-20

  • Supply: Elastic, no maximum

  • Value: Fixed exchange value of 1 USD

  • Redeemable: No

  • Legal rights / ownership rights: None

The Protocol handles the expansion and contraction of DUS. The minting of DUS is an automated process that will be executed by the AMO in response to changes in the balances within the DUCA Market Maker.

DUS RESERVE

The Protocol creates a separate and fully siloed Reserve Pool, the DUS Reserve. When DUS is minted the DUCA used to mint DUS is added to the DUS Reserve. Whenever DUS is sent in to swap the received DUS is burnt and the corresponding DUCA is taken from the DUS Reserve to return with the swap. This process will always happen against the DUCA Exchange Value.

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