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A.3 - The Stability Scope

The Stability Scope governs the management of the USDS Stablecoin. The USDS Stablecoin must be a permissionless and useful currency available to anyone. Its stability and risk must be managed to generate as much value for Sky and public good as possible.
This Article defines rules pertaining to Sky’s Collateral Portfolio, which consists of several different assets to ensure liquidity.
This Section governs the management of Sky’s Collateral Portfolio.
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To ensure adequate liquidity, Cash Stablecoins are managed through a simple Asset Liability Management framework. This framework allocates excess Cash Stablecoins into low-risk RWA assets, and draws on these assets to replenish the Cash Stablecoins when they fall too low.
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If the Dai and USDS Collateral portfolio contains more than 30% of Cash Stablecoins as defined above, then any Cash Stablecoins above the 30% mark must be allocated towards the collateral defined in .