Introduction

What is Ruby finance

Ruby finance offers the first decentralized algorithmic stable coin on Kava blockchain, aiming to be pegged to the price of 1 USDC via seigniorage.

The protocol's underlying mechanisms are designed in a way to ensure a peg of RUBY(RUBY CASH):USDC is achieved, and once achieved, it is maintained to establish $RUBY as a mirrored, liquid asset to $USDC. Protocol accomplishes this by introducing unique economic and game-theory centric dynamics into the market through its three tokens.

How does the protocol work?

The Ruby finance is based on a series of complex interactions, with the behavior of multiple stakeholders deciding the pricing dynamics of the multiple tokens of the ecosystem.

  • When RUBY price is over the peg (like it is expected it will be for the initial few weeks/months of the project), new RUBY are minted to drive the price down. These new RUBY are allocated to RSHARE holders in the boardroom, thus staking RSHARE in the boardroom makes the most logical RUBY during this period.

  • When RUBY price is at the peg, RUBY holders can use the RUBY-USDC LP to increase their yield. At this point, new RUBY will stop getting minted, and each investor's RSHARE will drive voting rights to have a say in the governance of the platform through DAO.

  • When RUBY price drops below the peg, investor's strategy should lean towards buying RBOND using RUBY. The RUBY used to buy RBOND will be burned, which reduces supply of RUBY and brings its price back to peg, at which point investors can sell RBOND to earn profit.

What is the point of Ruby finance?

In the short term, until the peg is achieved, RUBY is focusing on optimizing the protocol and creating wealth for our early investors through Farms and Boardroom.

Once the peg is achieved, the system’s mechanisms will focus on stability and consistency so that $RUBY can function as a mirrored, liquid asset to $USDC.

We need a vibrant Kava ecosystem with flourishing projects. Ruby Finance’s shift to a DAO-based governance system will ensure that the whole community stays together, makes decisions together.

What are the three tokens of Ruby finance?

RUBY multi-token protocol consists of the following three tokens and each plays a critical role in establishing this protocol:

  1. RUBY CASH ($RUBY) - The RUBY token is designed for use as a medium of exchange. The built-in stability mechanism in the protocol aims to maintain RUBY peg of 1 RUBY = 1 USDC

  2. RUBY Shares ($RSHARE) - RSHARE token holders have both governance voting and ownership rights of the protocol. Once DAO is established, they will play a crucial role in the governance of RUBY. RSHARE can be staked in the boardroom to earn a part of minted RUBY as rewards.

  3. RUBY Bonds ($RBOND) - RBOND’s main job is to help incentivize and reward users for ensuring peg during an epoch contraction period.

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