USDbr Peg Stabilization Module
Last updated
Last updated
Instead of a bonding mechanism, Nome proposes the implementation of the Stabilization Module. Nome Protocol maintains the peg of USDbr to $1 through a dynamic supply adjustment mechanism handled by the Stabilization Module. This module automatically increases or decreases the supply based on the market price of USDbr:
When $USDbr > $1: Every few hours (interval can be adjusted by governance in the future), the Stabilization Module can sell USDbr for the underlying asset (such as HONEY or USDT) and store that asset. This leads to an expansion of the supply.
When $USDbr < $1: The Stabilization Module would use the stored asset (such as HONEY or USDT) to buy USDbr. The purchased USDbr would not be burned by default, it could be used for future arbitrage or protocol operations when the price exceeds $1.02. This leads to a contraction of the supply.
In other words, USDbr remains pegged to $1 through algorithmic rebases:
If USDbr > $1.02: Supply increases to push the price back to peg.
If USDbr < $0.98: Supply contracts to restore peg.
🔄 Recent Update (As of March 23th, 2025):
The stabilization range has been adjusted from [0.95 – 1.05] to [0.98 – 1.02] to reduce volatility and optimize performance for UNI v3 and Kodiak pools. This tighter range allows for more consistent rebases and increased peg strength.
The Stabilization Module acts as a decentralized central bank, ensuring USDbr remains stable, predictable, and highly liquid. To see the Stabilization Module, head over to:
