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Atlantis protocol, what is it?

Nov 27, 2021
4.84 (888 votes)

Atlantis protocol, what is it? Atlantis is a decentralized reserve currency protocol. Discover it as well as the direct access to the official website.

Atlantis

Atlantis is a decentralized reserve currency protocol based on the ATLAS token. Each ATLAS token is backed by a basket of cryptocurrency assets (e.g. BUSD, BNB) in the Atlantis treasury, giving it an intrinsic value that it cannot fall below.

It will also gradually add other smaller-cap assets to diversify the cash portfolio. Atlantis is also introducing unique economic and game theory dynamics to the market through staking and bonding.

Atlantis, how do participants benefit?

The main benefit for stakers comes from protocol generated profits. At the same time, our fixed deposits guarantees you high APY as long as you stake long term with us – up to 11,500%.

The protocol earns yields from both its reserve assets and trading fees.

ATLAS supply grows only through bonding, there’s little inflation, and it’s always backed $1 to 1 ATLAS.

Through this we can be sure that stakers will be able to earn stable dollar backed yields, and also be able to hold onto an asset that grows in price over the long term.

The main benefit for bonders comes from price consistency. If the price maintain the same or rise, the bonders will benefit.

Bonders commit capital upfront and are promised a fixed return at a set point in time; that return is in pure ATLAS and thus the bonder’s profit would depend on ATLAS price when the bond matures. Bonders benefit from a rising or static ATLAS price because bonders receive ATLAS for bonding their LP or single asset tokens.

Atlantis

Is ATLAS token a stable coin?

No, ATLAS price is dependent on market valuation. The underlying price is always = or > $1, because the protocol will perform a buyback and burn when the price falls below $1 peg.

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

You might say that the ATLAS floor price or intrinsic value is 1 BUSD. We believe that the actual price will always be 1 BUSD+ premium, but in the end that is up to the market to decide.

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