Pluto is an innovative reserve currency design. It is a financial instrument resistant to bear markets that provides long-term and planned growth in the market price of an asset. The main metric of the protocol is the growth of the collateral value of each $PLUTO. The collateral is implemented by the Treasury, where parameters are controlled by voting, and can also change automatically depending on market figures. The mathematical model of Pluto is mostly focused on Treasury growth. It is built with this objective in mind.
The Treasury growth is driven by the funds of $PLUTO holders. The users can define that growth by means of $PLUTO release mechanism. The mechanism implies that the Treasury is spent only in case the $PLUTO token price falls below the backed price. This approach ensures that the market price never settles below the backed price.
At least 80% of the Treasury is comprised of stablecoins. The stablecoins are used for liquidity mining in money markets. The Treasury also includes liquidity provider tokens in the parent pool of $PLUTO, a megapool launched on the Puzzle Swap service. The list of supported assets can be expanded by voting conducted by stakers. Still, their share in the Treasury must never exceed 20% to ensure that the liquidity providing remains stable.
