What is sFOT?
Usually, stable coins are backed by something held, sFOT is backed by something sacrificed.
This is an algorithmic stable currency that is stabilized by arbitrageurs and backed by the value of overall burned currencies to reach it. We can simply explain that in three steps. In the first step, users burn their FOT which has a deflationary mechanism, so they desist from FOT’s passive value increase. In the second step, users burn their bFOT, doing so they desist from bFOT’s potential usage benefits in sub-systems and defi. In the third step, users desist from their gFOT which has a lot of staking benefits. Overall, sFOT is the trading for future possibilities.
How it Works?
1- Clearance Sale
Let’s consider bFOT price is 10 USD and gFOT minting is stable at 10,000 bFOT.
In this way, 1 gFOT mint 100,000 sFOT and that gFOT goes to the Clearance Sale Module.
If sFOT price in sFOT pools is 0,9 USD, gFOT in the Clearance Sale Module will have a 90,000 sFOT price tag.
If sFOT price in sFOT pools >1,1 USD, gFOT in the Clearance Sale Module will have a 110,000 sFOT price tag.
2- sFOT minting
If the daily average of sFOT price in sFOT pools is > 1 USD, Stable Module mints sFOT to stabilize the price and these newly minted coins goes to gFOT stakers at the epoch time.
To prepare for the release of Stable Module, we will have an upgrade on Grand Module staking. Upgrade will be pushed at 29th March, few hours before Epoch. Module will be released on time.
With this upgrade, a 14-day unbounding period will be added to Grand Module.
Coins under an unbounding period will not generate yield.