DUCA Stabiliser Contract 2

DUCA is trading above its Exchange Value

The DUCA stabiliser contract 2 is aimed at stabilising DUCA when the market value of DUCA goes above the DUCA Exchange Value. The stabiliser increases the DUCA supply on the market.

The first step is to verify the need to stabilise and therefore activate this contract. The verification process starts when the TWAP of Pool 5 (5 blocks / 1 minute) indicates a DUCA Market Value of 0,15% or more above the DUCA Exchange Value.

  • The threshold value is Exchange Value + 0,15%

Verification

  • None of the Stabiliser Contracts have been executed in the last 8 blocks

  • Verify arbitrage opportunities to negate manipulation

  • Execute ARB Contracts when profitable

  • Threshold value Exchange Value + 0,15% is/remains true as determined by the TWAP price feed of Pool 5 (5 blocks / 1 minute)

When the above conditions are met the DUCA supply needs to be expanded.

Expansion Size

  • Determine the target DUCA balance in DUCA / USDC Pool to rebalance the spot price in one swap

    • DUCA target spot price = DUCA Exchange Value

  • Calculate the amount of DUCA that needs to be added to DCM / DUCA Pool

    • Taking into account slippage

    • Capped maximum amount: the maximum amount of DUCA to be created is 0,2% of the DUCA Market Cap per 15 minutes with a minimum of 200.000 DUCA

Execute Expansion

  • The AMO sends DCM to the Core from DCM / DUCA Pool

    • Valued against TWAP DCM Market Value (5 blocks / 1 minute)

  • DUCA received 1:1 with DCM EV

  • The AMO adds DUCA to DCM / DUCA Pool

  • Activate USDC ARB Contract 2 to rebalance the pools

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