on-chain automated execution engine

The core mechanisms of the system (e.g. Rebase rewards, price adjustment, clearing) are implemented through an "on-chain automated execution engine" without human intervention:

Rebase engine: triggered every 12 hours, automatically calculates the pledge reward (0.3% -1%) according to market supply and demand, and distributes it to the on-chain address in real time according to the user's position ratio, with no delay in the whole process;

Price adjustment engine: real-time monitoring of the oracle price, when the "up/down threshold" is triggered, the "sell/repurchase" operation is automatically executed, and the response speed is more than 10 times faster than manual decision-making;

Liquidation Engine: Adopting the "Dutch Auction" algorithm, when the collateral triggers liquidation, the collateral is automatically auctioned at a decreasing price to ensure quick liquidation and reduce system losses.

Dynamic Risk Pricing System

According to the risk characteristics of different collateral, a "dynamic risk coefficient" model is designed to achieve refined risk control:

Risk Factor Assignment: Assign a risk factor to collateral according to indicators such as asset volatility, liquidity depth, and market acceptance (such as BTC 0.8, small market cap tokens 0.3);

Collateral rate calculation: the amount of USO that can be minted = the value of the collateral × the risk factor, for example, $1000 BTC (risk factor 0.8) can be minted up to 800 USO;

Real-time adjustment: Update the risk coefficient every week according to the on-chain data (such as the volatility of a token increases and the risk coefficient decreases) to ensure that the collateral value always covers the USO issuance, and avoid "systemic risks caused by the collapse of a single asset" (such as the hidden danger of DAI relying on USDC).