Liquidity flow optimization with Flow Finance
Explore our FAQ for clear answers to your queries, ensuring seamless navigation and support.
What is FlowUSD?
FlowUSD, the governance token of Flow Finance protocol is a synthetic stablecoin designed for liquidity adjustment. It maintains a fetched price through a dynamic price adjustment mechanism that automatically mints or burns tokens based on market conditions.
How to participate in FlowUSD’s governance?
FlowUSD is governed by a decentralized authority, allowing token holders to vote on key decisions such as minting thresholds, burn rates, and supply management. Governance is facilitated through the Flow Governance contract.
How does it maintain the price stability?
FlowUSD utilizes a smart contract-driven mechanism that adjusts its supply based on market price deviations. When the price exceeds the minting threshold, new tokens are minted, and when it falls below the burning threshold, tokens are burned, ensuring price stability.
How to balance minting and burning procedures?
Tokens are automatically minted or burned based on price deviations from the target value. If the price rises above the minting threshold, FlowUSD is minted, and if it falls below the burning threshold, tokens are burned to stabilize the price.
Is it possible to stake FlowUSD?
Yes, you can stake your FlowUSD tokens to earn rewards. Simply transfer your tokens to a staking platform, where they will be locked and can generate yield, typically through DeFi lending or liquidity pool strategies.
How to track the price functions?
Asset holders can track the current price of FlowUSD directly through the smart contract’s getPrice function, which provides the latest price, pegged to the US Dollar. Additionally, DeFi platforms and blockchain explorers can provide real-time price updates.
How to integrate with DeFi and liquidity platforms?
FlowUSD can be easily integrated into DeFi protocols such as decentralized exchanges, lending platforms, and liquidity pools. Its adaptive supply mechanism ensures liquidity optimization and seamless participation in yield farming.
What makes the approach innovative?
Unlike traditional stablecoins, FlowUSD uses smart contract logic to ensure price stability by minting new tokens when the price exceeds a threshold and burning them when it falls below, all while being governed by a decentralized authority for transparent decision-making.