CASH is a USD pegged stable coin that is backed by interest bearing tokens. Currently, only Saber USDT-USDC LP tokens are accepted as collateral to mint CASH. The DAO will be able to vote to add new collateral and edit collateral caps.
CASH Mint Address: CASHVDm2wsJXfhj6VWxb7GiMdoLc17Du7paH4bNr5woT
Address for Crate token which holds the collateral: J77Nq48nbq4Etf1voss38R3dTdR3yD7y5F6W6TaVHvmb
How is CASH peg maintained?
By allowing users to burn 1 CASH for $1 worth of USDT-USDC LP, users can arbitrage against the market when CASH trades below peg. By removing CASH from circulation, they put upward pressure on the peg.
If CASH trades above peg, then users can print 1 CASH with $1 worth of LP tokens. Then they sell the CASH on the open market for an arbitrage profit - which puts downward price pressure on the peg.
As CASH receives deeper liquidity, it will also tighten spreads and provide less slippage on trades.