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  • 🪙Midas
    • The Midas (MDS) Ecosystem
    • MDS Smart Contract: Step by Step How To
    • Multi-collateral MDS & Supported collections
    • Price Stability Mechanisms
    • Oracle Price Feeding
    • Risk management of the MDS platform
    • veinHades Governance of the MDS platform
    • Liquidations of risky assets & Collateral Cashback
    • External Participants
  • 🌊Hadeswap
  • Why hadeswap?
    • DCA* in and out of collections
    • two-sided liquidity pools
    • positive impacts
    • is it risky?
  • Providing Liquidity: How does it work?
    • liquidity pools and bonding curves
    • buy NFTs
    • sell NFTs
    • two-sided liquidity pools
    • pool settings in practice
    • collect trading fees
    • modify my existing liquidity pool
  • user generated educational material
    • How To Guide by TokenGuy.sol
    • Hadeswap explained by krysmatic.me
  • Hall Of Fame
    • the concept
    • Discord/Twitter bot
    • First educational video
  • Technical Documentation
    • coming soon
  • WHITEPAPER
    • $HADES Tokenomics
      • Bonding: Protocol Owned Liquidity
      • $HADES - The Governance Token
      • $HADES - Emission Schedule & Use case
  • âť“FAQs
    • FAQ April 2023
    • FAQ May 2023 (Office Hour Summary)
  • Bounty Program
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On this page
  • Target Price
  • veinHades Insurance Pool
  1. Midas

Price Stability Mechanisms

Target Price

The MDS target price has two distinct primary functions on the midas platform:

  1. It is used to calculate the collateral-to-debt of a vault

  2. It is used to determine the value of collateral assets MDS holders have to repay at the moment of closing the vault

The Target Price is denominated in USD and starts at 1, translating to a 1:1 USD soft peg.

veinHades Insurance Pool

The veinHades pool, built out in $HADES, serves as the insurance fund of MDS and helps safeguarding the peg to its 1:1 USD soft peg.

The pool is fed via different streams:

  1. Direct deposit of $HADES holders wishing to obtain veinHades to participate in governance

  2. 50% of Hadeswap’s Protocol Owned Liquidity (POL) profits

  3. 100% of midas’ revenue

Until 29/5/2023 11:59PM UTC, the veinHades:$HADES ratio is guaranteed to be 1:1, as after that date, we will deposit the backlogged $HADES and the APY will start running on the veinHades pool. The ratio will then be adapted depending on the $HADES being in the veinHades pool.

The insurance fund can be used as a last resort to guarantee the target price to MDS holders. It is used in case of serious emergencies, such as long term market irrationality, hacking or security breaches.

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Last updated 1 year ago

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