3.2 Algorithmic stablecoin 3.0 technical foundation

LynkCoDAO's stablecoin USO works in tandem with the main coin LNK, relying on the algorithmic stablecoin 3.0 technology system to achieve a "balance of stability and elasticity". Its core technologies include:

3.2.1 modular architecture design

Drawing on the modularization idea of Olympus V3 Default Framework, the system is divided into four independent modules: "collateral module, clearing module, governance module, and reward module", each module interacts through a standardized interface:

·Collateral module: responsible for managing USO's collateral (cryptocurrency, fiat stablecoin, RWA), and supports dynamic addition/removal of collateral types (community voting required);

·Liquidation module: When the value of the collateral is lower than the liquidation threshold, the on-chain auction is automatically started (the collateral is exchanged for USO and destroyed) to avoid insolvent;

·Governance module: handles community proposal, voting and execution logic, and interacts with other modules through smart contract calls.

·Reward module: Calculate and issue various rewards such as pledges, governance, and promotion, and support dynamic adjustment of reward proportions (in response to market supply and demand). The advantage of this design is that a single module upgrade does not affect the overall system, which facilitates rapid iteration and cross-chain expansion, and solves the upgrade problem of traditional protocols that "affect the whole body".

3.2.2 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.

3.2.3 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 risk factor to collateral according to indicators such as asset volatility, liquidity depth, market acceptance, etc. (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).