🐢FAQ

Why do we need Pegasus in the first place?

Dollar-pegged stablecoins have become an important element of the crypto community due to their low volatility when compared to tokens like Bitcoin and Ether. Users feel at ease transacting with stablecoins since they know they have the same purchasing power now as they do tomorrow. However, this is a misconception. The US government and the Federal Reserve control the dollar. This means that if the dollar falls in value, so will these stablecoins.

Pegasus intends to address this issue by developing SUS, a non-pegged stablecoin. Pegasus thinks that by focusing on supply growth rather than price appreciation, SUS will be able to serve as a currency that can maintain its buying value relative to other currencies.

Is SUS a stablecoin?

SUS is not a stablecoin. Rather, SUS strives to be an algorithmic reserve money backed by other decentralized assets. SUS, like the gold standard, provides free-floating value that users can always rely on, owing to the fractional treasury reserves from which SUS derives its inherent value.

SUS is backed, not pegged.

Each SUS is backed by 1 USDC, not pegged to it. Because the treasury backs every PGS with at least 1 USDC, the protocol would buy back and burn SUS when it trades below 1 USDC. This has the effect of pushing SUS GS price back up to 1 USDC. SUS could always trade above 1 USDCbecause there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.

You might say that the SUS floor price or intrinsic value is 1 USDC. We believe that the actual price will always be 1 USDC+ premium, but in the end that is up to the market to decide.