What Is KROME Shares (KROME)?
With advanced intelligent design, USDK (stablecoin of KROME project) starts off as 100% collateral backed, gradually reducing dependence to collaterals as project grows ensuring enhanced capital efficiency. USDK, starting as 100% collateral backed, auto‑magically balances collateral ratio as project grows for better capital efficiency – making KROME Shares the most advanced next-generation stablecoin project. If the collateral ratio fluctuates, the collateral in the current protocol may be more or less than the required collateral ratio.
For example, if the total amount of collateral in the current protocol is $900,000 and the USDK issuance is $1 million, if the collateral ratio is lowered from 90% to 80%, only $800,000 worth of collateral is needed, leaving $100,000 worth of collateral. In this case, anyone can execute a Buyback, return the KROME they have, and get the collateral corresponding to the value to get rid of the remaining collateral. KROME returned to the protocol will be burned, resulting in an increase in the KROME Shares price.
KROME Shares Storage Key Points
|Coin Name||KROME Shares|
|Source Code||Click Here To View Source Code|
|Explorers||Click Here To View Explorers|
|Twitter Page||Click Here To Visit Twitter Group|
|Whitepaper||Click Here To View|
|Official Project Website||Click Here To Visit Project Website|
The yield making machine
The AMO (Algorithmic Market Operations Controller) moduleperforms open market operations that maximize yield so long as it does not break the peg. KROME Shares AMO tirelessly works on behalf of KROME holders 24/7 for maximum yield. (AMO module is scheduled to launch on v2 update). Unlike governance tokens of other algorithmic stablecoins that their sole purpose is to hold the peg, KROME – the governance token of KROME project – has “REAL” value accrued from AMO profit.
Turbo charged LP rewards with 4x booster
With the cutting edge “VE” (Vote Escrowed) Design, users can have up to 4x boost on their yield locking up KROME Shares token. As veKROME mechanism rewards longer lock period exponentially, KROME holders can expect stronger momentum. There are two types of stablecoins collateral-based (USDT, DAI, KSD) and algorithm-based (Basis Cash, KAI).
In other words, the collateral base has a problem in that a lot of capital is tied up because 1 dollar or more of collateral has to be deposited to create a stablecoin worth 1 US dollar. USDK is a next-generation hybrid stablecoin that takes two advantages. It is a stablecoin that starts with a 100% collateral base initially, guarantees stability, and increases capital efficiency by gradually lowering the collateralization rate as the issuance volume increases and the project grows.
How does USDK always hold the value of a dollar?
When the price of USDK is higher than $1, anyone can raise the supply by issuing additional USDK on Krome.finance to bring the price of USDK down to $1. KROME Shares is called ‘minting’. For example, if the price of USDK is $1.1, you can mint and sell USDK to make a profit of $0.1 per piece. This causes minting, which increases the supply of USDK and causes the price to fall. Minting is currently only available over $1.007.
When the price of USDK is lower than $1, anyone can return USDK from Krome.finance and get collateral back to reduce the circulation of USDK and raise the price of USDK. This is called ‘Redeem’. For example, if the price of USDK is $0.9, then if you redeem USDK, you will get $1 worth of collateral in return, making a profit of $0.10 each. Because of this, there is a demand to buy and redeem USDK, which causes the price of USDK to rise. Redeem is currently only available under $0.99.
How is the USDK collateral ratio determined?
The collateral ratio starts at 100% at the beginning of the project to ensure stability. This means that USDK can be withdrawn at any time as collateral worth one dollar, so there is absolute stability in maintaining the one dollar price. As USDK issuance increases and KROME Shares liquidity increases, the collateral ratio is gradually lowered to increase capital efficiency.
On the other hand, if USDK issuance decreases and KROME liquidity decreases depending on market conditions, the collateral ratio may increase to increase stability. KROME Shares other words, the collateral ratio is balanced at a level at which USDK can stably maintain 1 dollar.