Deterministic Value

Kerosene's value in the system, not to be confused by its market value, is set deterministically by the protocol via

X=CDKX = \frac{C - D}{K}


  • X: the value of a single Kerosene token deposited in a Note as backing for DYAD

  • C: the total USD value of all exogenous collateral in the protocol (TVL). Critically, this total does not include Kerosene itself

  • D: the total supply of DYAD stablecoins

  • K: the total supply of Kerosene tokens