Tokenisation Mechanics
Precious metals are securely stored either within the company's bank vaults or entrusted to third-party custodians, and they will undergo tokenization. They will be represented on Blockchain by "Standard Metallic Tokens":
Gold as GSC (Gold Standard Coin)
Silver as SSC (Silver Standard Coin)
Swap to USDD
The conversion to USDD (USD-Demiourgos) will occur through a process involving the burning of Precious Metal Tokens (GSC/SSC) as follows:
For each unit of Precious Metal Token burned, a corresponding 1:1 "s-Token" will be generated by the Swap Smart Contract (SC) and stored at the SC Address. For instance, when 1 GSC is burned, 1 sGSC will be minted and preserved within the SC. This system facilitates the transparent tracking of the amount of Precious Metal Tokens (GSC/SSC) converted into stable-coins.
Utilizing price data provided by the Oracle for the respective Precious Metal, an intermediary, termed as a "metallic stable", will be established at a ratio equivalent to 90% of the Precious Metal's current price. For example, if the Oracle determines the price of 1 gram of gold to be $70, burning 1 GSC will yield 1 sGSC and 63 auUSD (gold-backed USD).
The "metallic stable" is retained by the SC, and a 1:1 USDD is minted in return.
The "metallic stable" assets are held within the SC, and in exchange, a 1:1 USDD is minted. This mechanism enables precise monitoring of the conversion of each Precious Metal Token into stable coins, as well as the individual tracking of the Metallic Backing %.
Metallic Backing %
The generation of Stables is done using 90% of the price of the Precious Metal given by the Oracle.
The Metallic Backing % represents the ratio between the total supply of "metallic stable" and the current price of the total supply os "s-Token" that exists for that Metal.
Example:
There are 24 GSC tokens burned to generate stable coins. At a price of 69$ per GSC, 1490.4 auUSD were generated.
This means the Metallic Backing % is 1490.4 auUSD / (24 x 69) = 90%.
If the Price of the Gold fluctuates, this means there could be the following Metallic Backing %:
Gold Price 65: Metallic Backing % for Gold = 1490.4 auUSD / (24 x 65) = 95.538%
Gold Price 76: Metallic Backing % for Gold = 1490.4 auUSD / (24 x 76) = 81.710%
Demiourgos Stable SC Interactions
The following interactions will be available for the Demiourgos Stable SC, the smart contract that is responsible for the generation of stable coins:
USER Interactions
Burn-Mint Interaction: Users will be able to generate either USDD or EURD (only USDD in the beginning), using as input Standard Metallic Tokens (GSC, SSC; only GSC will be available in the beginning);
Conversion rate 90% + Elite Account Bonus % of Oracle Price; see next page.
An extra 1% from the above % is generated extra, and kept by the Protocol as USDD
Swap-Remint Interaction: Users will be able to swap back USDD to "Standard Metallic Tokens", by burning USDD, subsequently burning the intermediary Metallic Stables, and extracting the "Standard Metallic Tokens" from the protocol (burning the s-Token and reminting of the Standard Metallic Token). Conversion rate is given by the Oracle price. Amount of Standard Metallic Tokens that can be reminted is limited by the amount of intermediary Metallic Stables supply.
Conversion Rate is subject to a flat 1% swap fee from the USDD input, and kept by the protocol
Therefore USDD can be used to swap Precious Metals from one to another, at the protocol level, within supply limits, with minimal fees (1% swap fee).
ADMIN Interactions
Negative Interactions, are interactions the increase the Metallic Backing %
Mint Interaction: The Admin can generate USDD/EURD tokens without burning Standard Metallic Tokens. The Mint Interaction cannot generate USDD/EURD when the Metallic backing % is above 90%.
Soft Remint Interaction: The Admin can reburn the s-Token back to remint the Standard Metallic Token. This recuperates burned Standard Metallic Token. The Soft Remint Interaction cannot be executed if the Metallic Backing % is above 90%.
Neutral Interactions, are interactions that don't modify the Metallic Backing %
Hard Remint Interaction: The Admin can the reburn s-Token and the exact amount of USDD (thus burning the equivalent of "metallic stable" to remint the Standard Metallic Token. This doesn't modify the Metallic Backing %, because an additional amount of USDD is also burned. This allows the recuperation of Standard Metallic Tokens without modifying the Metallic Backing %, by consuming stable tokens (USDD and/or EURD)
Positive Interactions, are interactions that decrease the Metallic Backing %
Burn Interaction: The Admin can burn Standard Metallic Tokens without generating USDD/EURD, in order to decrease the Metallic Backing %. (therefore injecting more Precious Metal in the backing of stable tokens)
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