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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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The Stability Facilitators can use the Operational Weekly Governance Cycle to modify the Asset Liability Management framework in order to make it more efficient, or more resilient. This modification can involve changing any of the logic defined in or its subdocuments.