Pluto Protocol has launched its reserve currency on the Waves blockchain. The currency is said to resist market conditions such as the bear market. The token PLUTO was recently launched, supported by a treasury and a market-making algorithm meant to create a predictable range for the token’s price.
The treasury creates a backed price based on the total value of its collateral. The algorithm buys back PLUTO tokens when the price is too low and mints new tokens when the price is too high.
Pluto Protocol aims to help crypto investors generate sustainable yields on crypto assets that would otherwise be dormant. Speaking on the launch, a representative of Pluto Protocol said:
“We’re excited to launch PLUTO. It’s clear we’re in a downmarket now, and more than ever, the crypto market needs something more engineered that can be resistant to external forces. That’s what we aim to do with Pluto, create something that can give sustainable yield even in a bear market.”
Once launched, users of the protocol will be able to use the protocol features, namely onboarding and staking. The onboarding feature lets users add collateral directly to the protocol in return for a bonus paid at the end of a lockup period. In contrast, the staking feature provides a flexible way to earn an additional yield on PLUTO without any lock-in period.
At its core, the Pluto protocol is a decentralized reserve currency based on the Waves blockchain. Its design makes it a sustainable token model that uses dynamic pricing adjustments and treasury backing, making it a reserve currency.