Value Set Dollar

Value Set Dollar (VSD) is an algorithmic and partially collateral stablecoin that incorporates key features from ESD V2, BASIS, and FRAX. It aims to solve core issues that its predecessors have struggled. VSD is stable based on an elastic supply model. To expand supply, new VSD tokens are minted to： 1. Auto-sell to the swap pools to ensure partial collateral. 2. Reward bonded VSD holders or used to pay off protocol debt (coupons). During a protocol contraction, VSD may be burned for a premium or redeemed from the partial collateral reserve. We’ve merged DAO and LP from the original design of ESD, since participants in DAO have almost zero risk and crazy upside, they would most likely dump on the market during contraction. Governance is done through Bonded LPs, who have the most skin in the game, as they are providing on-chain liquidity.