DAO Fund
The Community Fund Managed by Colors Finance Core Team and by governance in the future.
DAO address
Functions of Colors Finance DAO
The Dao Fund is Our 2nd Assurance to protect the multi-printer’s peg. It is controlled by an AI-driven DAO, which ensures the stability of our tokens.
Information about the DAO is as follows
When multi-printer’s TWAP is below 1, buybacks will be initiated by the DAO.
When multi-printer’s TWAP is extremely high, the DAO will sell some multi-printer to help assist in bringing back to peg and prepare its reserves for buybacks below 1.
Colors Finance DAO Fund is much stronger
Colors Finance will apply the new token modeling with two main pegged tokens, which are explained briefly as below:
DAO fund consists S, USDC.e, BLUE and GREEN and keeps the price of the peg token following the method: buy low - sell high.
In the bull market, S’s price increases, incentivizing users to hold BLUE/S instead of GREEN/USDC.e via selling stablecoin or other assets. Consequently, the DAO fund will sell BLUE/S to the amount of USDC.e in the DAO fund.
On the other side, S price decreases in the bear market, leading users to hold GREEN/USDC.e as safe assets by selling BLUE/S. DAO fund will use GREEN/USDC.e to buy S for a later phase.
This mechanism will make the DAO fund stay strong no matter the market condition, as it holds S, USDC.e, BLUE and GREEN to keep the whole project stable.
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