The Stabilis protocol is a decentralized system for creating and managing a stablecoin called STAB, governed by a DAO. The protocol consists of two main parts: the STAB module and the ILIS DAO module.

STAB derives its value from a CDP-based approach similar to DAI's / LUSD's: it is borrowed by providing collateral of value greater than the borrowed value, ensuring its always properly backed. The unique aspect of STAB is that it is subject to an interest rate; it can become cheaper or more expensive to borrow over time. In other words, it has a variable peg. This makes STAB a robust and sustainable stablecoin. But remember: stable, not 1 to 1 pegged!