Network - Binance Smartchain
Date Launched - 10th Dec 2021
What is Dios Finance?
Dios Finance, inspired by OlympusDAO, aimed to address this issue by establishing a token backed by a diverse amount of assets and focused on supply expansion as well as control. We hope that DIOS can maintain its purchasing power in the face of market volatility.
Our Goal
Our initial goal is not to find a stable price. This may seem antithetical to our currency aspirations, but we ensure you it is not. Dios Finance can be tuned to optimize for different things. The main tradeoff is volatility and profitability versus stability and consistency. With volatility and profit comes growth; this is what we want early on.
With tight policy and scale, Dios Finance should function well as a stable asset. Upward and downward pressures should stabilize at some non-intrinsic value. With loose policy, regardless of scale, Dios Finance has the potential to act as a wealth creation machine. The market premium of the token measures the positive sum of the game; all extrinsic value is new wealth created.
How does Dios Finance Work?
Each DIOS is backed by one BUSD but is not pegged to it. Because the treasury backs every DIOS with at least one BUSD, the protocol would buy back and burn DIOS if it fell below one BUSD.
This has the effect of raising the price of DIOS back to 1 BUSD. DIOS could always trade over 1 BUSD since the protocol has no maximum limit. Consider pegged == 1, whereas backed >= 1. One BUSD is said to be the DIOS floor price or intrinsic value. We believe that the true price will always be 1 BUSD + premium, but the market will ultimately decide.