Greeting! The USN annualized rate automatic adjustment mechanism has been successfully operated for three months and has taken good effects. The proportion of USN pegged days have reached 95%. According to the statistics observation and analysis, under the existing adjustment mechanism, the following two results may occur:
- Under the circumstance that the USN exchange rate has been off-pegged, a 2% reduction in the annualized rate will increase the probability that the USN will off-pegged down;
- When the USN has pegged and stabilized, if the minimum annualized rate is reduced to 1%, it will greatly reduce USN's protocol income. At the same time, because the annualized rate is too low, it may cause false demand for generating USN, which goes against the original intention of the healthy growth of USN generation scale.
Therefore, based on the actual situation, the Defibox Foundation decided to adjust the USN annualized rate reduction mechanism 2 as follows:
- The adjustment range of the annualized rate will be adjusted from “-2%” to “-1%”.
- Under the pegged and stabilized condition of USN, the minimum annualized rate will be adjusted from “1%” to “3%, that is, when the annualized rate is 3%, the USN annualized rate will no longer be reduced”;
Note: After the adjustment of the mechanism, there may be a minimum annualized rate at 1% when the 24-hour average USN exchange rate at 08:00 (HKT) (that is, the USN exchange rate judgment time) is at 0.98 USDT-1.02 USDT (that is pegged) for 2 consecutive days. After the annualized rate is adjusted to 1% through the USN annualized rate reduction mechanism 1, the exchange rate is stable. At this time, the mechanism will not trigger the reduction mechanism 2, and the original USN exchange rate will be maintained.
The automatic adjustment mechanism of USN annualized rate after adjustment is as follows:
Thank you for your support and attention to Defibox!
April 9, 2021
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