Recovery Mode

Kurrency tracks WCD Price at all times through various price feeds from DEXs, oracles and more. If WCD Price falls below $0.98, Kurrency immediately executes 'Recovery Mode' contract. Recovery Mode is a powerful tool for maintaining WCD Price, which temporarily suspends all WCD mint for 10 minutes, and temporarily increases Stability Fee for each collateral.

Suspension of WCD mint

• WCD supply does not increase due to suspension of WCD mint.

• Demand for WCD can only be met through purchase in the market — not mint.

• Increase in WCD buy in the market increases WCD Price, bringing it closer to 1 USD again.

Temporary increase in WCD Base Stability Fee

• To incentivize WCD Repayment, Base Stability Fee for each collateral is temporarily increased.

• In addition to decrease in WCD supply through repayment, purchasing WCD from the market for repayment also increases WCD Price and allows it to return to 1 USD.

WCD price	Additional Base Stability Fee Rate
0.97 < WCD Price < 0.98	50%
0.96 < WCD Price < 0.97	75%
0.95 < WCD Price < 0.96	100%
0.94 < WCD Price < 0.95	150%
0.93 < WCD Price < 0.94	200%
0.92 < WCD Price < 0.93	300%
WCD Price < 0.92	400%

Kurrency checks WCD Price every 10 minutes. When WCD Price returns to above 0.98 USD after Recovery Mode has been triggered, Recovery Mode is released and Stability Fee is returned to normal.

Recovery Mode Scenario

1. A user mints WCD with WEMIX as collateral

2. Assume the user’s Stability Fee is 3% before Recovery Mode.

3. WCD Price temporarily drops to 0.979 USD

4. Recovery Mode triggered : WCD mint is suspended, and Stability Fee increases to 60% (10% + 50%)

5. Similarly, Stability Fee of all users is increased, resulting in increased WCD buy in the market

6. WCD Price recovers above 0.98 USD

7. ‘Recovery Mode’ released, and Stability Fee returns to normal.