05. Tokenomics - ubiquity/ubiquity-dollar-development Wiki


Ubiquity's Algorithmic Dollar (uAD) is an algorithmic stablecoin that maintains its peg by virtue of its monetary and fiscal policies. We originally intended to design uAD to have no collateral, but realized that the algorithmic stablecoins that remained on-peg all had some form of collateralization.

Extending this logic, for our public launch, we will begin as fully collateralized and work our way into partial collateralization. Currently the collateral buyback is a manual process via our treasury wallet. This is to allow for us to iterate rapidly with new processes. Once we are happy with the process, which includes deciding which collateral (we are keen on permissionless, pegged stablecoins, like LUSD) raising the collateral via our proxy yield aggregator(s) and how aggressive the buyback is; we will automate it on Ubiquity Dollar sells via our Transfer Hooks.

🏦Dollar Collaterization

💲Token List

Ubiquity Ecosystem

While currently consisting only of the Ubiquity Dollar protocol, and our Proxy Yield Aggregator Beta, the Ubiquity ecosystem is designed with multiple products in mind. The design philosophy is that each product should be able to operate on its own; however, it will also be able to benefit from synergies with other products (the ecosystem being greater than the sum of its parts.) These are globally shared elements of the Ubiquity ecosystem across all Ubiquity products:

👨‍⚖️ Governance

🏦 Treasury

These components are designed to operate with either only one product (Ubiquity Dollar) or with other products. Some of the design decisions you will read about are a result of this goal.