The DEI Token

In recent weeks, the stablecoin DEI fell below the $1 peg, and this was a major concern as the developing team failed to provide updates regarding the measures being taken to restore the token’s value.

But the last week has seen a resurgence in the price for the DEI token as it heads towards the $1 peg; this has been noted by the 18Digits  community, who voted DEI up to the second-biggest gainer of the week, coming behind AssetMantle ($MNTL), DEI gained 6,018 spots to rank 585 on our chart for the week. 

This article gives insights into why so many people voted for the DAI token and all you need to know about the token.

What is DEI?

DEI is a cutting-edge algorithmic cross-chain fractional-reserve stablecoin with a single native bridge connecting all of the DEUS ecosystem’s chains. DEI comprises a free-flowing mix of DEUS tokens and another trustworthy stable, with the proportions varying based on the chain in question. Arbitrage bots are continually monitoring and adjusting DEI’s collateral ratio.

DEI’s main objective is to provide scalable and decentralized liquidity across all blockchains. DEI will allow users to send a stablecoin to any chain and claim it without any slippage on the other side.

DEI overview

The DEI token currently has a price of $0.683214 with a market capitalization of $45,988,085. DEI has a current trading volume of $1,130,683. It has a circulating supply of 7,455,510,000 DEI, with the total supply unknown. DEI has an All-Time High price of $1.18 and an All-Time Low of $0.525239, which occurred when DEI fell below the $1 peg. (Price index from the 28th of May,2022). DEI can be traded on several platforms with the common trading pair USDC/DEI and DEUS/DEI.

How does the DEI token work?

DEI does not require over-collateralization due to its fractional reserve properties. To absorb changes in value, many stable coins demand more funds to be locked up than the tokens are worth. DEI is largely backed by the collateral of a trusted stablecoin and partially by DEUS tokens.

DEI will be used as the collateral mechanism for all DEUS-based third-party applications. Because $DEUS is burnt for every DEI minted, DEUS token holders and liquidity providers will benefit directly as DEI adoption grows.

DEI action plan 

The DEUS ecosystem proposed a treasury bond program to restore the $1 peg stability. The treasury bonds would allow users to deposit collateral and earn a fixed interest based on the maturity date. The bond program could be referred to as the DEI redemption.

The DEI redemption to stabilize the peg began at the start of the week, and this is a major reason that many voters chose the DEI token as their favorite cryptocurrency during week 21 of voting. The redemption process involves DEI holders redeeming their DEI for USDC and vDEUS (a DEUS voucher that can be redeemed in the future). The process also qualifies users for early access to bonds and future airdrops. On the other hand, early redeemers will receive the highest dollar value per DEI, a shorter vesting period, and the first opportunity to redeem vDEUS.

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