Decentralised peg management

ION's peg is maintained by its AMO ("Automated Market Operator").

When ION is over peg, the AMO mints ION and sells it within its reference pool for its paired token (e.g. USDC), in the correct quantity to bring ION back to peg. The backing acquired is paired with free-minted ION and farmed, generating revenue for the protocol.

When ION is under peg, the opposite operation is performed: liquidity is removed from the pool, the paired token is sold for ION and the ION is burned.

Profitable repegging

The design of the AMO ensures that ION is always sold above par and bought below par. Repegging operations are therefore always profitable and increase the collateral ratio of ION.

Permissionless repegging

The PublicAMO contract allows any participant to re-balance the pools permissionlessly. This ensures that the health of the protocol does not depend on our team or any given (possibly centralised) infrastructure: it is permissionless.

There is a user-friendly interface allowing anyone to call the AMO and to view recent actions in the protocol app (Testnet).

Transparent collateral; Dex native

ION is minted and burned through the Dex pools, and so is truly native to Dexes.

ION's collateral remains always available and visible onchain in Dex pools.