What is Midas Dollar (MDO) | What is Midas Dollar token | What is MDO token

What is Midas Dollar (MDO) | What is Midas Dollar token | What is MDO token

Midas Dollar (MDO), an algorithmic stablecoin running on Binance Smart Chain. Midas Dollar is an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi. One of the biggest issues of all current algorithmic stablecoins right now is utility. What is Midas Dollar (MDO) | What is Midas Dollar token | What is MDO token

From Q4 2020 we’ve taken strategic steps to refine our approach and direction going forward, continuing our relentless focus on DeFi. Stepping into 2021 with a stronger management board, we are thrilled to start a new year with lots of confidence and excitement.

Today, we’d like to announce the launch of Midas Dollar (MDO), an algorithmic stablecoin running on Binance Smart Chain. Midas Dollar is an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi. One of the biggest issues of all current algorithmic stablecoins right now is utility. We are glad that MDO has use-cases right away.

Inspired by Basis and its predecessors (Empty Set Dollar and bDollar), Midas Dollar is a multi-token protocol that consists of three tokens: MDO (the algorithmic stablecoin), Midas Dollar Shares (or MDS, which holders can claim MDO inflation when the network expands), and Midas Dollar Bonds (or MDB, which can be purchased at 1:1 rate when the network is in contraction and can be redeemed with premium for MDO the network returns to its inflationary state, above the $1 peg).

Midas Dollar Protocol

  • When MDO trades below the $1 target price

When MDO price is below the target price of $1, token holders can purchase Midas Dollar Bonds (MDB) by burning MDO to reduce the circulating supply with a 1:1 ratio, and Bonds will be burnt when users redeem MDO with a premium bonus.

In case of redemption, an amount of MDO will be minted according to the TWAP at the beginning of the epoch (for example, if the MDO price is $1.1 then one Bond burnt will get back 1.1 MDO). Important to note is that Bonds have no expiry after purchase.

  • When MDO trades above the $1 target price

When MDO price is above the 1$ peg, the token supply will have to expand to push it back down to 1$ and the contract will allow the redemption of the MDB.

When the price of MDO continues trading above the $1 target price after bond redemption, the contract mints an appropriate amount of new MDO. This will be distributed to the Boardroom Stakers.

This three token system creates incentives through seigniorage, always pushing MDO towards its peg. MDS is used to redistribute the seigniorage from inflating the asset, while MDB is used to establish a price floor while MDO is in its deflationary state.

️Unique algorithm of MDO

  • (Boardroom) Epoch duration: 8 hours during expansion and 6 hours during contraction — the protocol reacts faster to stabilize MDO price to peg as compared to other protocols with longer epoch durations
  • Epoch Expansion: Capped at 6% if there are bonds to be redeemed, 4% if treasury is sufficiently full to meet bond redemption
  • MDB tokens do not expire and this greatly reduces the risk for bond buyers
  • Price feed oracle for TWAP is based on the average of 2 liquidity pool pairs (i.e. MDO/BUSD and MDO/BNB) which makes it more difficult to manipulate
  • The protocol keeps 75% of the expanded MDO supply for MDS boardroom stakers for each epoch expansion, 25% toward Midas DAO Fund. During debt phase, 50% of minted MDO will be sent to the treasury for MDS holders to participate in bond redemption
  • No discount for bond purchase, but premium bonus for bond redemptions if users were to wait for MDO to increase even more than the 1 $BUSD peg
  • Stronger DAO Fund to stablize price better
  • Riding on Midas.eco’s various resources and ecosystem pillars, MDO will find its ever growing utilities right after launch, which is its great advantage over other algorithmic stablecoins.

Midas DAO Fund

This is a fund established to support MDO ecosystem:

  • Rewards to all contributors & participants
  • Marketing, events and partnerships to grow MDO
  • If the protocol in expansion, DAO Fund sells a part of MDO to BUSD and/or BNB, we set the ratio currently as 50% MDO 25% BUSD, 25% WBNB.
  • If the protocol in contraction, DAO Fund buys back MDO with a percentage of reserved BUSD and BNB, with the current ratio is 80% MDO, 10% BUSD, 10% BNB.

Midas Vault

Midas Vault is a yield aggregator that maximizes the income potential of your assets from the Binance Smart Chain ecosystem in just one step.

Midas Vault automatically optimizes and executes the optimal investment strategies for users to achieve maximum yield.

Part of the vault’s profit shall be distributed to MDS owners.

More details will be announced soon.

MiDEX

The common problem of AMM DEXes currently is their sub-optimal use of funds. Most assets are mainly reserved for liquidity pools, without earning meaningful returns. This is just like a bank having all of its assets lying idle without earning any interest.

Midas team has been working on an AMM DEX that aims to solve this problem. This DEX will reserve a sufficient portion of liquidity for swapping needs of all users. The remaining shall be allocated to Midas Vault to generate yield from optimal investment strategies on the Binance Smart Chain DeFi ecosystem.

MiDEX shall use MDS as the governance token.

More details on MiDEX shall be announced soon.

Midas Dollar token distribution

  • Initial supply: 100,000 MDO
  • Distribution period: 10 days
  • First 24h (teaser mode): 1,000 MDO
  • Day 2 — Day 10: 90,000 MDO (10,000/day)
  • Airdrop: 9,000 MDO (BNB, BUSD, BDO, bCash) hodlers can claim MDO by connecting your wallet at https://midasdollar.fi/claim

The airdrop is organized on a first come — first serve basis, until the whole 9,000 MDO is fully distributed. Each wallet can claim a maximum of 2 MDO.

Reward rate for Bank pools from Day 1

  • BUSD: 2x
  • USDT: 2x
  • BDO: 2x
  • LINK: 1x
  • DOT: 1x
  • bCash— 2x will be open from this block  https://bscscan.com/block/countdown/4720000
  • VALUE-B 1x will be added from Day 2
  • Pancakeswap LPs MDO/BNB — 64x will be added from Day 2
  • Pancakeswap LPs MDO/bCash— 16x will be added from Day 3

Block countdown:  https://bscscan.com/block/countdown/4702800 ( Mon Feb 08 2021 22:00:00 SGT)

Midas Dollar Shares distribution

MDS has a maximum total supply of 21,000 tokens.

  • 1,750 MDS are allocated to Midas DAO Fund
  • 1,750 MDS are allocated to the team.

Both are vested linearly over 12 months.

The remaining 17,500 MDS are allocated for incentivizing Liquidity Providers, as follows:

  • PancakeSwap LPs MDO/BUSD: 6x
  • PancakeSwap LPs MDS/BUSD: 3x
  • PancakeSwap LPs MDO/USDT: 3x
  • PancakeSwap LPs MDO/BDO: 1x

Duration: 12 months

Participate in Midas Dollar farming

To participate in the protocol, visit the Banks dashboard here, and select your preferred pool.

Participate in the Boardroom

Boardroom opens 5 days after the launch: 13/02/2021.

Final Note

Midas Dollar is the latest product of the Midas Protocol ecosystem as we are strong supporters of algorithmic stablecoins in particular and DeFi in general. However, MDO is an experiment, and participants should take great caution and learn more about the seigniorage concept and supply expansion and contraction mechanism to avoid any potential loss.

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What is Midas Dollar Share (MDS) | What is Midas Dollar Share token | What is MDS token

Midas Dollar (MDO), an algorithmic stablecoin running on Binance Smart Chain. Midas Dollar is an innovative solution that can adjust its supply deterministically to move the price of the token in the direction of a target price to bring programmability and interoperability to DeFi. One of the biggest issues of all current algorithmic stablecoins right now is utility. We are glad that MDO has use-cases right away. Decentralized Stablecoin with an Algorithmic Central Bank. What is Midas Dollar Share (MDS) | What is Midas Dollar Share token | What is MDS token

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