While the MiniPanther protocol is in operation, we will create a new ERC20 token called PantherUSD on the Fantom Network that we intend to maintain a price of at least $1 long-term. This will be accomplished via centrally executed trades that will ensure the availability of $1 in total liquidity + backing per PantherUSD on the market.
The team has initially minted some PantherUSD. An initial liquidity seed has been provided at $1/PantherUSD. Because no supply of PantherUSD was initially available to the public, the price cannot drop below $1 until additional PantherUSD are added to the publicly available supply.
When buyers purchase PantherUSD and raise the price above $1, it should create trading opportunities that will allow the addition of additional PantherUSD to the liquidity pool at higher prices. The team will ensure that the amount in reserve is always sufficient to restore the $1 peg If the PantherUSD price falls below $1.
The above procedure seems to be a more valid substitute for algorithmic stablecoin systems that emit arbitrary numbers of tokens. We may incentivize the purchase and liquidity provision of PantherUSD with token emissions in the future.
Initially, 500 million PantherUSD will be added to the MiniPanther treasury to signify MiniPanther DAO's role as the custodian of PantherUSD and a participant in the Fantom ecosystem for grant purposes. This PantherUSD will be forever locked in the treasury, as MiniPanther has no administrative treasury withdrawal function. Any Fantom ecosystem grants received will go partially towards expanding PantherUSD liquidity.