Empty Set Dollar

Empty Set Dollar, døllar and the {ess}, rebuilding finance from the ∅, a fully decentralized elastic-supply stablecoin. Its construction is an iteration on Basis and its predecessors, aiming to solve core issues within their mechanics. To translate to Ethereum, we incorporate ideas from 0x Staking, Rho, and build on top of Uniswap V2 oracles. We value simplicity over perfection. Over-complicating mechanism design can lead to unintended side effects. Instead, døllar strives to achieve a minimum viable mechanism which can remain secure while solving the underlying problem, but has ample room for improvement via its decentralized governance system. døllar is a single-token protocol. ESD is both the stablecoin as well as the vessel with which DAO stake can be claimed via bonding. Bonded ESD allows the user to claim future supply extension rewards as well as participate in governance. Price stability is based on an elastic supply model. To expand supply, new ESD tokens are minted and granted to bonded ESD holders or used to pay off protocol debt. When a contraction is necessary, ESD may be burned for a premium quantity of coupons, which can later be redeemed 1:1 for ESD when the supply once again extends.