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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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Andromeda is the RWA Arranged Structure that can allocate capital into Low-Risk RWA (LRR). LRR is safe, short-term treasury strategies of less than one (1) year duration. Whenever excess Cash Stablecoins must be allocated into LRR, or whenever LRR must be sold to replenish Cash Stablecoins, the amounts allocated or sold are applied to the Andromeda RWA Arranged Structure.Control of the Andromeda RWA Arranged Structure must be prepared to transition to the Spark Star.