$DMND Treasury will be initially used to generate diversified interest in stablecoin lending pools, backed by insurance wherever possible. Priority is in safety over returns. Target = backing per diamond in treasury to exceed $1 USD This is possible due to the treasury profiting from diamond buybacks and earning of additional interest in stablecoin pools 20% is kept in stablecoins for automatic buybacks for price floors below 80% Up to the remaining 80% can be released for manual buybacks within 24 hours There will be an algorithmic protocol that will automatically repurchase $DMND from the market if prices fall too far below treasury backing, ensuring that the protocol will profit from such purchases, and that $DMND will never fall too far below the treasury backing per $DMND
Target annual interest to generate from stablecoin staking pools = 3%. Any form of additional interest earned beyond the target 3% might be used to make longer term / riskier investments for the purposes of enhancing annual yield and to boost total treasury value. This strategy means there is a chance that the backing per DIAMOND might rise significantly above $1 USD, but will never fall below $1 USD.
% inflation rate and backing will be fixed until the formation of governance, and can be changed in the future via voting after governance is enabled.