UP Token - Additional Details

The UP token is 100% Backed and will always have a backing. There are no algorithmic or inflationary mechanisms, as every token in circulation must be bought (minted).

$UP tokens will always be redeemable for the price listed, minus the redemption fee.

• When liquidity is added to DEX’s and or CEX’s you may end up paying more or having to sell for less than what is on the dApp and vice versa. The price in our dApp will be the true value of $UP, and that value will always be going up!

• Once LP is added and trading enabled on the open market outside of our dApp, arbitrage opportunities may arise.

  • These will present unique strategies for traders and can be compared to something like UST and Luna arbitrage but without any of the pitfalls of a completely algorithmic backed token or even a stable coin whose price is pegged to a fiat currency.

  • Although $UP is backed by a stable coin, the $UP token itself is not pegged. This means arbitrage opportunities and inefficiencies in the market will offer traders the chance to try to profit from arbitrage across multiple DEX’s, further driving up the volume to mint and redeem $UP.

Both Minting (i.e.Buying) and Redeeming (i.e. Selling) through the Mint and Redeem contracts will cause price appreciation.

There will be no capped supply.

• Supply is determined by mint and redemption volume.

• Minting increases supply.

• Redemption reduces supply.

  • Redeemed $UP tokens are burnt/destroyed and removed from circulation.

Price = $BUSD in Treasury / Circulating Supply

The supply will never be 0, as the protocol will always keep at least 1 token in the unforeseeable scenario that all tokens are redeemed (this cannot happen due to the protocol also owning tokens but stated here for transparency and clarity reasons)

• Also stated in the event someone asks the "What If" question concerning the price of $UP if there is 0 supply (divide by 0 problems)

• Since the protocol will be continuously minting $UP from revenue and fees, this information is provided as an FYI with how the contract is built, to always leave 1 token in the treasury at all times instead of burning full supply, as a failsafe.

Initially the only way to acquire $UP will be through minting on the dApp and the only way to redeem/sell will be through the Redemption contract which in turn will burn all $UP being redeemed and issues back stable currency to the user.