AxeDAO is a decentralized reserve currency protocol based on the AXE token. Each AXE token is backed by a basket of assets (e.g. USDC, DAI) in the Axe treasury, giving it an intrinsic value that it cannot fall below. Axe also introduces unique economic and game-theoretic dynamics into the market through staking and bonding.

There are two main strategies for market participants: staking and bonding. Stakers stake their AXE tokens in return for more AXE tokens, while bonders provide LP or DAI tokens in exchange for discounted AXE tokens after a fixed vesting period.