PegsCash FAQ

4 min readJan 19, 2021

Frequently Asked Questions

A brief introduction Of PegsCash

PegsCash is a partially collateral algorithmic stablecoin. Through unique mint and redemption functions, the collateral rate is adjusted according to market consensus, making PUSD pegged with the U.S. dollar.

2. How many types of tokens does PegsCash have? What do they use for?

Pegs cash has two tokens, including the stablecoin PUSD and the governance token Pegs share (PEGS). PUSD is a stablecoin pegged with the U.S. dollar, while PEGS is a system governance token, responsible for all over-collateralization of the system

In the near future, we will introduce a bond mechanism and Peg stablecoins with other flat money. Stay tuned Please.

3. What are mint and redemption?

PUSD can be minted and redeemed from the system at a price of $1. In order to mint a new PUSD, users must invest $1 USDC into the system. The only difference is the ratio of USDC and PEGS that constitute the value of that 1 PUSD.

When the collateral ratio is 100%, USDC will be minted 100% by PUSD. As the protocol enters the fractional phase, the collateral ratio is lower than 100%, and minting requires both USDC and PEGS. For example, with a 98% collateral ratio, every PUSD minted requires $0.98 of USDC and $0.02USD of PEGS.

Same with Redemption. When the collateral ratio is 100%, redemption will get 100% USDC, but when the collateral ratio is lower than 100%, USDC and PEGS will be obtained at the same time. For example, with a collateral ratio of 98%, each PUSD can redeem $0.98 of USDC and $0.02 of newly minted PEGS.

4. What is the adjustment mechanism of the collateral ratio?

In the initial stage of product issuance, the mortgage rate will be adjusted every hour, with an adjustment range of 0.25%. When PUSD is equal to or higher than $1, this function will reduce the collateral ratio once per hour; when the price of PUSD is lower than $1, this function will increase the collateral ratio once per hour. This means that if the PUSD price is equal to or higher than $1 most of the time in a certain period of time, the mortgage rate will decrease continually. If the PUSD price is below $1 most of the time, the collateral ratio may increase to 100%.

5. What is PegsCash liquidity mining?

By depositing Uniswap LP on the FARM page, PEGS rewards can be obtained and can be achieved by adding liquidity to the liquidity pool of token trading pairs on Uniswap.

The mining tutorial can be viewed on our Medium: https://pegscash.medium.com/liquidity-mining-tutorial-4246bf624eda

6. What is the daily output of liquid mining?

The total amount of PEGS (shares) is 30,000,000, 80% (24,000,000) are produced through mining. The output of the first year of mining is 12,000,000 and then halved every year thereafter. Pegs Cash only supports two trading pairs for mining, PUSD (stablecoin)/USDC, PEGS (shares)/PUSD, each accounting for 50%.

7. How to participate in the dividend?

Adjust the seigniorage tax and redemption tax to 0.3%. 30% of the seigniorage tax and redemption tax will be used as the fund reserve of Buyback, and 70% will flow into the dividend pool in PUSD.

PEGS staked to the dividend pool can receive dividends. The user will receive PUSD dividends according to the proportion of PEGS staked in the dividend pool, and the daily dividends will be distributed according to the block.

8. Do liquidity mining and dividend need to be locked?

You can withdraw the LP tokens you put into liquid mining or the PEGS staked at any time, there is no lock-up period

9. How to distribute the remaining 20% tokens？

20% (6,000,000) of the tokens belong to the team and will be released 6 months after the project launch, and will be released linearly in 12 months. The contract address of the team’s token lockup is 0x5B46ca123648CC0fBA131051A46Fd1B5b736a961

10. Will the code be audited?

Our contract code was opened source, also submitted to the block explorer, and uploaded to Github. Anyone is welcome to review and question the code. We are in touch with audit companies to conduct the audit, but this will require a certain amount of time and cost, and we will announce it after the audit.

11. Does the contract have a time lock?

For LP tokens staked into the liquidity pool for liquidity mining, the contract creator does not have any withdrawal rights, so there is no need for a time lock. You can check this by checking our code.

Taking into account the possibility of further development of the project and our upcoming DAO governance, we have retained a portion of the tokens that have not been distributed. For some PEGS tokens other than the liquidity pool, we will transfer them after the project has been running stably for a period of time, to a contract with a lock-up period. The development team anticipates the long-term profit of the project., so there’s no need to worry about this part.

12. What are the contract addresses?

PUSD: 0x412e5a36BDE71AA2c38e1c0E26BAAf7F2f0Bc24a

PEGS: 0x88bd6eFe33bc82860278c044eFA33364c6285032

Mint Pool: 0xd707ee369ff628e58c31597bd70fc68012618650

Uniswap Pair(PUSD-USDC): 0x71aac1e9ddbfbcafa3d81bcc5a21e762775bf739

Uniswap Pair(PEGS-PUSD): 0xc1203d0134d7147ce48e42d1ccbdcd2abec079ae

FARM_contracts(PUSD-USDC): 0x6E222C95dD4f7346582cDdc02845138a92aF59DC

FARM_contracts(PEGS-PUSD): 0x7b956219B28B909812dD15AdD1F8584218aE4f79