6.4 Stability guarantee: full-link protection from "collateral risk control" to "algorithm adjustmen

Instead of relying on a single mechanism, USO's "$1 anchoring" is achieved through a triple net of "collateral risk control + algorithmic moderation + community intervention" to ensure stability in extreme market conditions.

1. Collateral dynamic risk control

The risk factor is linked to the collateral rate: each type of collateral is set according to the risk level (e.g. BTC risk factor 0.8, small cap token 0.3), the higher the risk, the less USO can be minted (e.g. $1000 BTC can minted up to 800 USO);

Real-time value monitoring: The on-chain oracle updates the collateral price every 10 minutes. When the "total collateral value/USO liquidity" is lower than 110% (safety threshold), the system automatically sends an early warning to the mortgagor, asking for replenishment of collateral or redemption of part of USO within 24 hours;

Liquidation mechanism: If the target is not met within the warning period, a "Dutch auction" is triggered - the collateral is sold at 10% off the market price, redeemed with USO and destroyed until the mortgage rate rises to more than 110%, ensuring that the value of the collateral always covers the USO issue.

1. Algorithm-driven price adjustment When the USO market price briefly deviates from $1 (such as $0.95-1), the system automatically intervenes through algorithms:

Premium (market price > $1.05): Increase the USO casting limit, encourage users to mortgage assets to cast USO and sell arbitrage in the market until the price falls; at the same time, inject 5% of the newly minted USO into the liquidity pool to improve the ability to withstand selling pressure;

Discount (market price < $0.95): Use the Treasury USDT to buy back USO at market price and destroy it, reducing liquidity; at the same time increase the USO pledge income (such as temporarily increasing the 90-day annualization from 3% to 5%), attract users to buy and hold, and suppress selling pressure.

1. Community governance emergency intervention When extreme events (such as a 50% plunge in a single collateral) cause algorithmic regulation to fail, the community can stabilize USO through governance intervention:

Urgent proposals to adjust the proportion of collateral (such as temporarily increasing the proportion of RWA to 30%) to diversify risks;

Launch "cross-currency rescue": exchange LNK reserves for USDT to replenish the mortgage pool (subject to joint voting by LNK and USO holders);

Suspend USO minting until the market stabilizes to avoid panic selling that exacerbates de-anchoring.