Konstant Protocol

The Konstant protocol translates price-volatility into supply-volatility. This means the number of KUSD tokens in user wallets automatically increases or decreases based on price. These supply adjustments are called “Redemptions” and they occur once each day. When the KUSD network grows you’ll automatically have more tokens in your wallet, when the Konstant network shrinks you’ll automatically have fewer tokens in your wallet, but the price per KUSD will tend to cycle around $1. This novel redemption mechanism is what allows KUSD to be used as a stablecoin.

KUSD is much more reactive to demand and supply. It is a financial building-block much like Bitcoin, it is algorithmic and uncollateralized. However unlike Bitcoin, KUSD can be used as a stablecoin.

• Fiat collateralized stablecoins such as (USDT, USDC) rely on centralized banking partnerships.
• Debt-marketplace derived stablecoins such as (DAI) cannot be sustained by free market incentives and rely on periodic bailouts.
• KUSD is an independent financial primitive that does not rely on centralized collateral or lenders of last resort.