This section includes SATO's core mechanics, blockchain oracle, monetary policy, and Layer 2 workflow chart.
SATO Token Contract Address: 0xf6e6892325a74383a70570f1ebea9a476483a611
Token Symbol: SATO
SATO Stability Mechanism
SATO is a new generation algorithmic Stablecoin that shifts price volatility into supply volatility.
SATO doesn’t hold any collateral or requires any form of governance to keep its price at $1.00. It is purely algorithmic based on supply and demand market forces.
What does that mean?
Every day there will be supply adjustments depending on the price of $SATO. These adjustments are called rebases.There are two types of SATO rebases: expansion and contraction.
Every 24 hours, SATO will undergo a rebase operation.
SATO tracks the USDT price from oracles and uses it to update the SATO contracts on a daily basis at 6:00 PM UTC
Once the SATO oracle has been updated, the rebase function executes and adjusts the daily supply. The maximum supply adjustment per daily is 10% of the circulating supply.
For positive rebase SATO price must be > $1.05
For negative rebase SATO price must be > $0.95
The SATO network can contract if there are downward price pressures. In this case, the price of SATO is below $1.00. When this happens, the network follows a deflationary model and reduces existing tokens.
When the network contracts, users lose a few of their SATO tokens in their wallet. The new number of tokens that are burnt are based on the rebase policy. However, the overall percentage of the network owned by a user remains the same.
The SATO network can expand if there are upward price pressures. In this case, the price of SATO is above $1.00. When this happens, the network follows an inflationary model and allocates more tokens.
When the network expands, users get more numbers of SATO tokens in their wallet. The new number of tokens are based on rebase policy. However, the overall percentage of the network owned by a user remains the same.