Float Protocol aims to build the decentralized monetary system for the future. At the heart of the protocol is the $FLOAT token, the native stablecoin of the Float Protocol. $FLOAT is also supported by a second token, $BANK. The $BANK token serves three purposes: first to take the profit created in times of excess demand for $FLOAT, second to support the price of $FLOAT from time to time and third to govern the Float Protocol.
In general, $BANK's price is affected by stabilizations in the $FLOAT price. For instance, if the price of $FLOAT is too high, this excess demand is captured and transferred to $BANK. Similarly, if the price of $FLOAT is too low, BANK is used to support the $FLOAT price.
