Apollo Protocol aims to build a decentralized stablecoin. They claim that all the current models have the volatility associated with entry into the ecosystem tied directly to the stablecoin. To combat this they are proposing a model of complete or “true seigniorage” where they have a token (Apollo Growth; AOX) that acts as an “on-ramp” into the ecosystem and absorbs volatility as new users enter. This token feeds into their vault which collateralizes the stablecoin (Apollo Stability; AOY) completely. This stablecoin is adjusted in supply with every transaction to match the collateral and maintain a faithful peg to 1.00 USD. Any excess change in supply is off-set using our “off-ramp” token that acts as a long term “share” and governance token (Apollo Share; AOZ). This share token receives rewards from our growth token also and can feed into the stablecoin if necessary (if both AOX and AOY are below peg).

Did this answer your question?