VNST
English
English
  • Table of contents
    • VNST Whitepaper
    • 📚Terms & Definitions
      • Common Terms
      • VNST Protocol Terms
    • 💎Overview
    • đŸ’ŦIntroduction
      • What Is VNST?
      • Why Was VNST Established?
      • Token Infomation
      • Roadmap
    • đŸĒ™Core Concepts
      • VNST Protocol
      • Exchange Rate Determination
      • Mint & Redeem
      • Covered Amount
    • 💰BoS - Basket of Stablecoin
      • Stablecoin Evaluation Framework
    • 📈Applications Of VNST
    • 🤝Merchant Of VNST
      • Merchants
      • Responsibility & Benefits
    • đŸĻIssuer
      • Organization
    • 🔰Advantages and Disadvantages
    • â„šī¸Tutorial
      • How to install the wallet extension?
      • How to Mint & Redeem
    • â‰ī¸FAQs
      • Basic Information
      • Common Errors
    • đŸ‘ĨCommunity
    • 📖Legal Terms
    • Page
Powered by GitBook
On this page
  1. Table of contents
  2. Core Concepts

Exchange Rate Determination

Last updated 1 year ago

Mechanism for Exchange Rate Determination:

The mechanism for setting the exchange rate of VNST is a process that utilizes intelligent algorithms to represent the exchange rate for VNST. Within the intelligent algorithm, VNST has devised a dynamic balancing mechanism with real-time market transaction rate, references to ensure optimal conversion of value to VNST for users.

This creates favorable conditions for determining and representing the value of VNST/USDT, helping maintain the exchange rate equilibrium of the VNST/USDT pair in the market.

For instance, in cases where the difference between the USDT/VNST exchange rate and the market rate exceeds the covered price (0.5%), the VMM will autonomously balance by increasing or decreasing circulating supply immediately to maintain stability and equilibrium in the VNST/USDT exchange rate.

Through this automated mechanism, VNST has the capability to actively ensure and sustain stability, while also minimizing the potential impact of price manipulation and significant fluctuations on user benefits.

To ensure the balance of the VNST/USDT exchange rate, the system will automatically scan the market rate for updates to the equilibrium rate every five minutes.

đŸĒ™