YFLUSD functions similarly to historic algorithmic stablecoins, but with a few tweaks that will aid price stability over time. Of particular note is YFLUSD will be pegged to $1 of ETH instead of another stable. This will further function as a way for YFLUSD to have true independence from other stablecoins. In addition to this it will have a pivotal role in the YFL ecosystem through a mechanism to allow the use of a transaction fee (less than 1%) of each YFLUSD transaction to be sent to up to two additional initiatives, projects, the YFL Treasury, or yYFL stakers. By providing yet another stream of revenue to the YFL community, YFLUSD will help to build synergy and support where it is needed.