KerosenePrice

(KEROSENE)

Kerosene is a specialized utility and "collateral-booster" token designed to enhance the capital efficiency of the DYAD stablecoin. While standard minting typically requires 150% collateral in assets like ETH, users can deposit Kerosene into their "Note" to lower this requirement toward 100%. It functions as a claim on the protocol's surplus, representing the value of non-Kerosene collateral that is not currently backing the stablecoin. To utilize Kerosene, users must own a "Note," which is an ERC-721 NFT acting as a personal vault within the ecosystem.

Kerosene utilizes a unique technical formula to establish its "inner value" within the protocol. This deterministic value is calculated by taking the Total Value Locked (TVL) minus the DYAD Supply, and then dividing that figure by the Kerosene Circulating Supply. This mechanism ensures that if the protocol’s collateral grows at a faster rate than the stablecoin supply, the deterministic value of Kerosene increases, allowing for more efficient minting capabilities for holders.

Kerosene exists with two distinct valuations. The market price is determined by supply and demand on various trading platforms. However, the DYAD protocol ignores this market volatility for its internal operations. Instead, it uses the "deterministic value" (also known as the Floor or Vault price) to calculate the collateral ratio and determine how much DYAD a user can mint. This ensures that the protocol’s internal mechanics remain tied to the actual surplus collateral held in the system rather than external market fluctuations.

Kerosene is categorized into two forms: Unbounded and Bounded. Unbounded Kerosene refers to the liquid version of the token that can be freely traded or moved. In contrast, Bounded Kerosene is "locked" within the protocol. While Bounded Kerosene cannot be easily withdrawn or sold, it often provides a higher valuation multiplier for minting purposes, rewarding users who commit their capital to the protocol's long-term stability and ecosystem health.

Since Kerosene acts as collateral to support a user's debt, it is subject to liquidation risks. If the deterministic value of Kerosene drops—which can occur if the protocol's Total Value Locked decreases or the DYAD supply increases—a user's Collateral Ratio (CR) may fall below the required threshold. If a liquidation is triggered, the Kerosene held within the user's Note NFT is typically redistributed to liquidators or the protocol as part of the debt-clearing process.

Kerosene can be traded on LBank and other major decentralized exchanges on the Ethereum network. Its initial distribution was notably handled via an airdrop to several prominent NFT communities to bootstrap the user base. For updates and technical documentation, the protocol prioritizes decentralized channels like GitHub and its official social media presence on X (formerly Twitter), focusing on a builder-centric approach rather than traditional community platforms.