A Three-Token System: $DARK, $NESS and $DUSD
DarkNess Dollar protocol has two own tokens DUSD and NESS — plus DARK from the DarkCrypto.
DARK is the main utility token of DarkCrypto Finance and DarkVerse. Its role here is similar to NESS, providing in/out as the system collateral.
NESS (DarkNess Dollar Share) is the algorithmic token that accrues fees, seigniorage revenue, and excess collateral value.
DUSD (Dark Dollar) is a stablecoin pegged around $1, partially backed by collateral like USDC, USDT and DAI and partially backed algorithmically by DARK and NESS. The ratio of collateralized and algorithmic, so-called Collateral Ratio (CR), depends on the market price of DUSD.
At genesis, CR is 90% and the protocol adjusts the collateral ratio once every hour by a step of 0.25%.
When DUSD is at or above $1, meaning the market’s demand for DUSD is high, the system should be in de-collateralize mode by decreasing the collateral ratio, minimum to 70%.
When the price of DUSD is below $1, the function increases the collateral ratio, maximum to 95%.