Dynamic Set Dollar (DSD)

Dynamic Set Dollar (DSD) is the first fully decentralized finance (DeFi) compliant USD stablecoin. Unlike traditional stablecoins, DSD operates without collateral backing, making it a censorship-resistant and self-stabilizing cryptocurrency. It offers numerous advantages, including being a trustworthy form of passive income and a store of value. DSD utilizes Oracle-driven pricing for voluntary supply elasticity, eliminating relying on third parties. With its innovative protocol core dynamics, DSD ensures the maintenance of its USD peg through supply changes managed in 12 epochs per day.

In each epoch, the supply of DSD can expand or contract by a maximum of 10% to maintain its peg to the USD. The difference between the DSD TWAP (Time-Weighted Average Price) and 1 USD determines the supply regulation. If the TWAP price falls below 1$, new debt is minted, and participants can purchase Treasury Securities (TS) that can be redeemed for DSD with a premium in positive future epochs. The supply change solely depends on the DSD TWAP price. If the price is below 1$, new debt is minted, while if the price is above 1$, the supply will expand. Participation in supply extension requires redeeming TS and staking DSD in the DAO or providing liquidity.

DSD differentiates itself from ESD (Empty Set Dollar) in two main ways. First, DSD has more frequent epochs, with 1 epoch occurring every 2 hours, resulting in 12 epochs daily. DSD responds faster to price discrepancies and market demands, enabling more accurate price stabilization. Secondly, unlike ESD, DSD implements a dynamic supply change formula that is not artificially capped. This flexibility allows DSD to adapt its supply regulation more precisely according to market conditions. With its unique features, DSD aims to provide a stable and efficient stablecoin solution for the DeFi ecosystem.