What Is Doggy Style Coin (DSC)?

What Is Doggy Style Coin (DSC)? Complete Guide Review About Doggy Style Coin.

What Is Doggy Style Coin (DSC)?

There is a demand for a decentralized reserve currency. Dollar-pegged stable coins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether.Users are comfortable with transacting using stable coins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is not exactly true. The dollar is controlled by the US government and the Federal Reserve.

Doggy Style Coin This means a depreciation of dollar also means a depreciation of these stable coins. ICE DAO aims to solve this by creating a free-floating reserve currency, ICE, that is backed by a basket of assets. By focusing on supply growth rather than price appreciation, ICE DAO hopes that ICE can function as a currency that is able to hold its purchasing power regardless of market volatility.

Doggy Style Coin Storage Key Points

Coin BasicInformation
Coin NameDoggy Style Coin
Short NameDSC
Circulating Supply2.11B DSC
Total Supply10,000,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

ICE is backed, not pegged

Each ICE is backed by 1 MIM, not pegged to it. Because the treasury backs every ICE with at least 1 MIM, the protocol would buy back and burn ICE when it trades below 1 MIM. This has the effect of pushing ICE price back up to 1 MIM. ICE could always trade above 1 MIM because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.

You might say that the ICE floor price or intrinsic value is 1 MIM. Doggy Style Coin believe that the actual price will always be 1 MIM + premium, but in the end that is up to the market to decide.

How does it work?

At a high level, ICE DAO consists of its protocol managed treasury, protocol owned liquidity (POL), bond mechanism, and staking rewards that are designed to control supply expansion. Bond sales generate profit for the protocol, and the treasury uses the profit to mint ICE and distribute them to stakers. With liquidity bonds, the protocol is able to accumulate its own liquidity. Check out the entry below on the importance of POL.

Why is PCV important?

As the protocol controls the funds in its treasury, ICE can only be minted or burned by the protocol. This also guarantees that the protocol can always back 1 ICE with 1 MIM. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy ICE below 1 MIM with the treasury assets until no one is left to sell.

Doggy Style Coin You can’t trust the FED but you can trust the code. As the protocol accumulates more PCV, a longer runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer term because more funds are available in the treasury.

What will happen if there is a bank run on ICE?

Fractional reserve banking works because depositors don’t withdraw their funds all at once. A depositor’s faith in the banking system rests on regulations and agencies like Federal Deposit Insurance Corporation (FDIC). ICE does not have FDIC insurance but it has an incentive structure that protects stakers. Let’s take a look at how it performs during a hypothetical bank run.

In this scenario, Doggy Style Coin assume the majority of stakers would panic and unstake their tokens from ICE – the staking percentage which stands at 92% now quickly collapses to 3.3%, leaving only 55,000 ICE staked. Next, they assume the Risk-Free Value (RFV) inflows to the treasury completely dry up. For context, RFV is currently growing at about $1 million every 2 days. However, during a bank run this growth will likely stop.

Why is the market price of ICE so volatile?

It is extremely important to understand how early in development the ICE DAO protocol is. A large amount of discussion has centered around the current price and the expected stable value moving forward. The reality is that these characteristics are not yet determined. Doggy Style Coin The network is currently tuned for expansion of ICE supply, which when paired with the staking, bonding, and yield mechanics of ICE DAO, result in a fair amount of volatility.

ICE could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of ICE could also drop to a large degree if the market sentiment turns bearish. They would expect significant price volatility during your growth phase so please do your own research on whether this project suits your goals.