DawnStar Finance DSF Price $ 0.00043

DawnStar Finance is the first algorithmic stablecoin on Polygon backed by real yields & pegged to the price of 1 MMF via seigniorage. DSF token is designed to be used as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain DawnStar's peg to 1 MMF token in the long run.

How the Algorithmic Peg works?

• When DSF is below Peg. When DSF price is below MMF Current Market Price (Peg), token holders can purchase MOON and DSF will be burnt to reduce the circulating supply when users redeem DSF tokens with a 1:1 ratio.
• When DSF is above Peg. When DSF price is above MMF Current Market Price (Peg), the token supply will have to expand to push it back down to Peg and the contract will allow the redemption of the SOLAR.

When the price of DSF continues trading above the MMF Current Market Price (Peg) after bond redemption, the contract mints an appropriate amount of new DSF and this will be distributed to the SOLAR stakers.

Note that DSF actively pegs via the algorithm, it does not mean it will be valued at 1 MMF all times as it is not collaterized . DSF is not to be confused for a crypto or fiat-backed stablecoin.