Current USDOG version: V.1

DOG and StableDog are interlinked. The continued usage and adoption of StableDog will ensure the continuous burning of DOG.

Mechanism of action

The two assets DOG and StableDOG work together to bring value to one another.
DOG is deflationary. If Stabledog’s price rises above $1.05, the system will automatically mint Stabledog and buy back DOG from the markets. 75% of the DOG that is bought back is burned, and another 25% is added to the stabledog reserve fund. There’s a 4% LP fee which will increase USDOG liquidity over time and a 4% protocol revenue fee.

Stabledog itself is backed by DOG. If Stabledog’s price falls below $0.95, the system will automatically use the DOG in the reserve fund to buy back and burn Stabledog.

DOG Staking and LP mining are coming, the rewards will be paid in Stabledog.
More price stabilization methods are being worked on, such as an LP mining system for DOG/USDOG, where users earn a high APR, but are susceptible to partial liquidations if the price falls below a certain threshold.

Evolution Stages

V.1: Direct USDOG automatic stabilization.

V.2: USDOG introduces the ability for users to create new Stable Dog with zero slippage by burning DOG.

V.3: USDOG introduces the ability for users to LP Farm Stable Dog with a liquidation mechanism designed to ensure stability.