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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.
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This Article defines temporary measures for implementing the Stability Scope during the transition to the Endgame State.
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This Section defines temporary measures to give effect to the Stability Scope during the Endgame transition.
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The Native Vault Engine will be upgraded to support Star ownership and transferred to the first Star incubated from the Incubator. It is temporarily controlled by Sky Core.While it is under the control of Sky Core, it will have a limited set of collateral types and risk parameters that the Stability Facilitators must implement according to the following subdocuments.
The Native Vault Engine risk parameters are defined in the subdocuments herein.
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The Stability Fee parameter is an annual percentage fee charged on the Dai generated on Vaults. It is expressed as an annual percentage yield but it is charged on a per-block basis in Dai. The Dai from this fee is minted, added to the Dai debt for the vault, and then transferred into the Surplus Buffer which is under the control of Sky Governance. Each vault type has its own Stability Fee that can be adjusted by the Stability Facilitators. The Stability Facilitators must regularly update Vault Types’ Stability Fee according to requirements defined in the subdocuments below.The Stability Scope Advisors must develop a Rate System which can be used to set various interest rates, including the rates for Core Crypto vaults and the minimum lending rate for future Stars. The Rate System must be based on external benchmarks including the risk-free rate and the highest current sustainable rate in crypto financial markets. These rates should act as the lowest and highest base rates to which additional spreads can be added to better reflect the risks involved in specific lending activities.The Rate System must be dynamic, based on the state of Cash Stablecoins in the system, and naturally move the state towards the target Cash Stablecoins defined in .
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List of Stability Fee Formulas according to the current conditions and chosen meta-parameters:• ETH-A:
Dai Savings Rate (EDSR while active) + Normal LR Spread + Exposure Spread• ETH-B: Dai Savings Rate (EDSR while active) + Low LR Spread + Exposure Spread• ETH-C: Dai Savings Rate (EDSR while active) + High LR Spread + Exposure Spread• WSTETH-A: Dai Savings Rate (EDSR while active) + Normal LR Spread + Exposure Spread + Asset Spread• WSTETH-B: Dai Savings Rate (EDSR while active) + High LR Spread + Exposure Spread + Asset Spread• WBTC-A: Yield Collateral Yield Benchmark + Normal LR Spread + Exposure Spread• WBTC-B: Yield Collateral Yield Benchmark + Low LR Spread + Exposure Spread• WBTC-C: Yield Collateral Yield Benchmark + High LR Spread + Exposure Spread