USDB Price

USDB is a first-of-its-kind stablecoin that allows FantOHM to generate revenue like no other OHM fork. USDB is a proprietary tradable stablecoin. It serves the use case of unlocking the full value and potential of the treasury and the DAO operating account while maintaining stability in the treasury. The amount of USDB created at a given point in time is the burnt market value of FHM at a specific point in time.

Proof-of-burn is a consensus mechanism that ensures there will be no double spending of an asset. Once an FHM token is burned, the value (at the time of burn) is locked and recorded on-chain. That means burning an amount of FHM from the DAO operating account would mint the same dollar value in USDB. $1 in FHM to $1 USDB. When USDB rises above $1 in value, a bond is offered to purchase USDB with DAI at a $1 per USDB valuation instantly. DAI is then deposited to FantOHM’s treasury and investors get USDB that can then be swapped for other stables or assets in a DEX.

Right now, there are two main reasons why we need USDB: 

• To unlock the value of the illiquid supply of FHM in the DAO operating account without affecting market price.
• To utilize stablecoins in the treasury to achieve utility and/or growth through asset purchases. These stablecoins would otherwise just be sitting idle and holding value in the treasury.