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Kortana

KUSX

What KUSX is, what stands behind it, and what does not.

KUSX is a dollar-denominated token on Kortana with a reference price of $1.00. It is the quote asset for DNR markets on KortanaSwap, and its price is set by open trading in those markets.

The protocol holds no reserve against KUSX and offers no redemption. Holding KUSX gives you no claim on the protocol, and there is no vault or custodian standing behind it. That is how KUSX is designed, not a gap in it.

KUSX supply is not currently adjusted in response to price. The controller that would do that is deployed but has never operated: it requires independent DNR/USD price reporting, and none exists yet. Until it does, nothing is acting to hold KUSX at its reference price.

Once that reporting exists and the controller is activated, it will issue KUSX when the traded price is above the reference price and retire KUSX when it is below. It will do so only with DNR the protocol has earned by issuing KUSX, never with deposited funds, and it stops when that inventory runs out. Limits cap how far any single adjustment can move, so the protocol cannot make a sharp market move worse.

Market conditions may move the price away from $1.00, and at present there is no mechanism working to bring it back.