📍Pegging & Backing

How does the pegging of Φ$ work?

Φ$ has a soft-peg to the value of the US Dollar, and its price are constantly rebalanced to ensure the 1:1 ratio to the USD is maintained. It does it with the help of the following mechanisms:

• Supply rebasing (aka burning, minting tokens),

• Increasing and decreasing of the backing reserves' ratio,

• Open market price arbitrage,

PHI Labs is also working to offer officially supported fiat onramp and offramp options for users to buy in and cash out of Φ$ on a fixed 1:1 ratio to the US Dollar, which will further strengthen its pegging on-chain.

What backs Φ$?

Φ$ is backed by Φ at a minimum of a 5:1 ratio. That means that for every $1 worth of Φ$, there are $5 worth of Φ in reserves backing it.

All these reserves can be audited in real-time by the community and the treasury wallet address will be made available to the general public.