Draco Finance is an algorithmic stable coin currently pegged to the value of 1FTM. Draco Finance’s full focus is to build a true cross-chain algorithmic stable coin protocol that is stabilized with true use-cases all around the DeFi Ecosystem. As the value of the peg is algorithmic, it’s common for the value of DRACO to fluctuate to be both slightly above and slightly below the value of 1 FTM. When DRACO has a value higher than 1 FTM, the new DRACO is distributed in the Castle. When DRACO has a value lower than 1 FTM, the Castle stops distributing DRACO and the Bond is instead open.

DRACO (Pegged FTM) is the main token with an unlimited supply. Keep in mind that the supply is unlimited, not infinite, which means that there will be new $DRACO minted as soon as 1 $pFTM > 1 $FTM (TWAP > 1.01). This is to increase the supply so in turn the price will go down and meet its soulmate, $FTM. When 1 $DRACO < 1 $FTM, the minting of $DRACO stops in order to not push down the price any further.