Lycan chain ecosystem is providing a platform where the community can burn LYC and mint Omega stable coin in return. The value of Omega will be directly pegged to a stable currency. This Omega coin will be free of all the transaction costs (gas fees) on the Lycan chain. The collateral ratio is to be decided by the community via a uniquely designed decentralized governance mechanism. LYC is the governance token for the Lycan chain. One has to stake his LYC to raise a proposal and other community members will vote for the same.
The value of the LYC in the open market will decide the collateral ratio of Omega. Burning LYC to mint Omega will control LYC supply in the market and help maintain the price of LYC in the long run. It is to be noted that an Omega cannot be converted back to LYC. This will directly impact the collateral ratio of the stablecoin and in turn, will increase people’s trust in Omega.