Quote from: Totem Official on November 01, 2020, 05:12:29 PM

Hello! 👋🏻 In this post, we will tell you about the Totem stabilization mechanism

💳 The stabilization mechanism is a mechanism that mitigates fluctuations in the market price of a token and the risks of default by a company that has committed to redeeming the token with labor. In the case of TOTEM, we use the aDai token for this.

📌 It is pegged to the US dollar at a rate of 1 aDai = 1 USD, and the Totem network is used to maintain this value. How does the TOT stabilization mechanism work?

🔹 Configures the CDP risk parameters. Thus, all holders of the TOT token are entitled to manage the risks of the network. They can configure these parameters both manually and automatically.

🔹 You can customize the auction liquidation parameters. It is necessary to balance profit and accumulated debt. So, thanks to him, the system is stable. The stability fee is recorded as profit.

🔹 All holders of TOT tokens have the right to vote on the addition of new cryptocurrency assets that will ensure the creation of new CDPs, as well as the parameters of its risk and liquidation auction.

🔹 In addition, all token holders also have the right to vote to remove crypto assets that secure them for future CDPs.

🔹 Configures the oracle machines. They are necessary for the network to work, so token holders can vote to add new ones or delete old oracle machines.

✅ Thus, thanks to the stabilization mechanism, it is possible to successfully maintain the token price at the level required for the market. Holders of TOT tokens can directly participate in decision making by voting.

📢 Learn more about the Totem project on our website: http://totprotocol.com/

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Good information keeps us informed!