$MORE + $sMORE

$MORE

Stack’s $MORE token is a non-algorithmic, collateral-backed asset soft-pegged to the dollar. For every $1 USD of $MORE should have more than $1 USD of collateral backing.

Stack considers $MORE to be worth $1 however at times it may not trade at this value. In these instances, Stack has several options at its disposal to regain the $1 USD peg.

$MORE was developed using the OpenZeppelin ERC20 canonical implementation.

$MORE Peg Stability

$MORE is soft-pegged to $1 USD and it's important that it trades consistently at a $1 value. The peg stability mechanics rely on two primary tools: Interest Rates and Arbitrage.

Interest Rates

Stack sets the interest rate for the protocol. As discussed on the next page, these rates are an important tool in managing the circulating supply of $MORE.

To encourage economic activity, we prefer low rates for borrowing on the protocol.

• Low rates encourage $MORE borrowing and $MORE in circulation

• With low rates there is less demand to stake, keeping $MORE in circulation

However, if $MORE is being dumped and begins to depeg, we can go to high rates.

• At higher rates, borrowers are encouraged to close out positions to avoid incremental fees/costs

• High rates also pass-through to stakers, encouraging staking, removing $MORE from circulation

Arbitrage

Arbitrage is another way peg stability is incentivized through the activity of market participants.

• If $MORE were to trade below $1 USD, it would be advantageous for debt holders to purchase $MORE at a discount and use these "cheap dollars" to pay back outstanding debt. Buying discounted $MORE will eventually raise the price back to $1.

• If $MORE were to trade above $1 USD, users holding Stack collateral could open a new position and sell the borrowed $MORE, capturing that value between the issuance and sales price. Selling $MORE from this behavior will lower the price back to $1.

• As the re.al ecosystem expands $MORE may trade at different prices in different markets. Users can buy and sell from these different markets to close the spread and move prices back to $1 USD everywhere.

Its quite common for bots to monitor pools and quickly capitalize on these opportunities, with the benefit that depegs are often quickly corrected.

Emergency Rate Hikes During a Depeg

CDP economics incentivize borrowers to buyback $MORE and repay debt in the event of a depeg. However, these market dynamics may lag the speed that fear and panic selling permeate an ecosystem and cause irreparable harm. The plan below seeks to solve this problem while incentivizing both borrowers and liquidity providers (stakers).

In the event of a serious depeg, where the price of $MORE falls below $0.95, the protocol will take emergency action, leveraging interest rate hikes to force the closure of leveraged positions and incentivize additional market participation.

A 100% interest rate will be implemented when $MORE falls below the $0.95 depeg threshold. The rate will be lifted by 100% every 24 hours until the peg is restored to $0.995. At $0.995 interest hikes will pause and remain at the elevated state until $0.999 is achieved. At that time, rates will taper off by 100% every 24 hours until the base rate is restored.

At the same time, the majority of vaults will have their debt ceilings set to zero, there should be no opportunity to open new positions until the ecosystem stabilizes. Once peg is restored, Stack will begin to slowly open capacity alongside $MORE demand.

CDP economics give the majority of the benefits of a depeg to borrowers, leaving CDP liquidity providers “holding the bag.” Borrowers are able to reduce debt at a discount while LPs and other market participants are forced to wait the situation out. Our solution gives ample benefit to both groups, as $sMORE stakers benefit from the increased staking yields returned from the elevated rates, ensuring all market participants are incentivized to participate in $MORE's repeg.

Rate hikes and other protocol adjustments will be processed manually. Any depeg should be looked at on a case-by-case basis. The guidelines above may not be the optimal solution in each instance and can be adjusted based on the specific needs required to stabilize the protocol during a period of crisis.

$sMORE

$sMORE is the staked version of $MORE, shares in a vault of $MORE that accrues additional fees from protocol operations.

$sMORE is an ERC-4626, a standard used to optimize and unify the technical parameters of yield-bearing vaults that represent shares of a single underlying ERC-20 token. When users deposit $MORE tokens into the $sMORE vault (using the ERC-4626 standard), they receive $sMORE tokens in return, representing their share of the vault. As the value of the vault goes up i.e. Stack platform fees accrue to stakers, the value of $sMORE also goes up.

$MORE - Denoted in amount

$sMORE - Denoted in shares

Upon $MORE deposit, $sMORE shares received:

shares = deposit amount * $sMORE current supply / balance of $MORE in vault

When staked, the fees that accrue to $sMORE are sent back to stakers each day as .