Price Stability Implementation

How Singular Implements Price Stability

In the long run, Singular believes the Singular protocol stability system can be used to restore long-term prices by multiplying existing supply. The protocol-determined priority of holders of Singular Bond tokens in this two classes of tokens to produce long-term desired peg in a decentralized way:

  1. The Singular protocol is designed to restore long-term prices to $1 by multiplying existing supply by . The core idea is that to maintain a peg in the long term, we just need to measure the price of Singular and adjust Singular token supply accordingly.

  2. The Singular protocol via the oracle system will monitor price levels and adjust token supply of Singular Dollar predicted by Quantity Theory of Money to keep price levels determined by Singular DAO.

Last updated