Supply Cap and Stability Mechanisms

Supply Cap

ATOM will have a supply cap of 50M at launch and will be increased as we grow. Implications and lessons learned:

  • A cap prevents ATOM supply from unnecessarily overinflating

  • Better control over ATOM supply, and supply growth, minimizes unnecessary supply volatility

Stability Mechanisms

Over-collateralisation is the main stability parameter. Others will include:

  • AxiomSwap integration: deposit LP tokens in an existing stablefarm to earn AXIOM rewards

  • ATOM Saving (single-staking product): Deposit ATOM > earn AXIOM. Governance will control the target interest rate of ATOM Saving, which will help to control the amount of ATOM in the market.

  • Minting and Redeeming: You can mint or redeem the ATOM stablecoin whenever there is an arbitrage opportunity. The mint/redeem mechanism has a 0.5%/0.9% fee, respectively, where accumulated fees go to governance stakers.

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