Experimentation

Ethos

First and foremost we aim create a usable, stable, and decentralized asset. As such, we do not view capital efficiency or partial collateralization as an immediate goal. Even so, to stay competitive long-term, we do want to enable the protocol to evolve over time if novel solutions are discovered and become battle-tested.

Experimentation

All experimentation will be controlled by governance. At launch no experiments will be active, and we do not recommend launching any experiments until the reserve has had time to significantly over-collateralize, and only doing so in cases where inaction would be existential to maintaining the protocols existing dominance.

It's imperative that any secondary stability mechanisms, especially those that aim for partial collateralization, follow our design principles:

1. The underlying model (or one very similar) has been tested and validated in production on a different stablecoin protocol.

2. The reserve is sufficiently over-collateralized such that a failure in the experiment will be able to be canceled while still maintaining over-collateralization of the system.