About Kerosene

Kerosene is a token used within an ecosystem to mint DYAD stablecoins by leveraging surplus collateral. It doesn't act as collateral itself but grants the right to mint DYAD against the excess collateral already present. The protocol dictates Kerosene's value based on the system's overcollateralization level, essentially equating it to the available surplus collateral (collateral minus DYAD). Its market price may fluctuate, but arbitrage opportunities exist if it falls below its protocol-defined value, bringing it back into parity.