Stabilizing WEMIX$

WEMIX$ maintains stability through pegging with USDC, an on-chain reserve. The Treasury, MINT and DIOS all contribute to the stabilization of WEMIX$ within the ecosystem. The total circulation of WEMIX$ and USDC in the Treasury will always remain the same.

Price Stabilization via DIOS

Dollar In and Out Stabilizer (DIOS), is a WEMIX$ price stabilizing protocol which prevents depegging through TIP & TOP, which are responsible for stabilizing the price of WEMIX$ depending on how it has depegged.

TIP(Treasury In Protocol): Prevent value depegging from the expansion of the ecosystem

As the ecosystem grows and the demand for WEMIX$ increases, WEMIX$ price rises and depegging occurs in the Master Liquidity Pool (MLP), the USDC/WEMIX$ exchange. In this case, DIOS will implement TIP (Treasury-In-Protocol). When the TIP is executed, the MINT contract swaps WEMIX$ in the MLP for USDC. Since the price of WEMIX$ is higher than USDC, one or more USDC is swapped with 1 WEMIX$. All swapped USDC is deposited into the Treasury and the additional WEMIX$ that remains is transferred to the DIOS Reward Pool.

TOP(Treasury Out Protocol): Prevent value depegging from the contraction of the ecosystem

If the ecosystem shrinks for some reason, such as the demand of WEMIX$ decreases or has been attacked, depegging could occur in the Master Liquidity Pool (USDC/WEMIX$ pool), causing the WEMIX$ price to drop. In this case, DIOS will execute TOP (Treasury-Out-Protocol), where USDC is withdrawn from Treasury and swapped to WEMIX$ in the MLP. Since the price of WEMIX$ is lower than USDC, 1 WEMIX$ equivalent to 1 USDC is transferred to and burned in the MINT contract, and the remaining WEMIX$ is transferred to DIOS Reward Pool as a seigniorage. Under any circumstances, DIOS protocol will always have the equivalent amount of minted WEMIX$ and USDC in the reserve.

TIP & TOP Exchange Rate

TIP & TOP activates automatically via the smart contract when the swap rate of MLP(oUSDC-WEMIX$) deviates by over 0.1% until the swap rate is stabilized back to 1. TIP & TOP is constantly executed through an algorithm in set amounts so that there is no loss from slippage or price impact. Detailed values of the mechanism are closed from the public to prevent external threats such as front running. Furthmore, these values may change depending on the market conditions. However, in case of mUSDC-WEMIX$ pool, TIP & TOP is triggered when the swap rate differs by more than 0.5%.

DIOS Reward Pool: The smart contract that stores the profits generated by DIOS in WEMIX$. The reward is distributed to stakers in DIOS Staking.

Blockade

Blockade is a mechanism applied solely to MLP to control the market volatility of WEMIX$. Blockade is triggered when the MLP swap ratio of USDC-WEMIX$ (1:1) deviates more than 5%, and external participants are restricted from providing/withdrawing liquidity and swapping tokens until WEMIX$ price stability is restored.

Only DIOS is allowed access to MLP, which will trigger TIP/TOP to stabilize the swap ratio to 1:1 through arbitrage. The seigniorage generated will be transferred to the Stability Pool of DIOS, and once the price has been stabilized, all external participants will access to using the MLP.

Stability Pool : Stability Pool is the reward pool contract in which seigniorage generated from TIP, TOP, and Blockade executions are accumulated and stored by the DIOS protocol.