In the ESD project documentation, it is described as a "decentralized self-stabilizing dollar."

Robert Leshner, the founder of Compound Finance, calls it "a brand-new algorithmic stablecoin."

Meanwhile, the ESD whitepaper refers to it as an "elastic supply stablecoin."

Empty Set Dollar (ESD) is a synthetic asset, similar to MakerDAO's DAI or Synthetix's sUSD, designed to maintain price stability by tracking the value of the US dollar.

This is achieved through a rebase mechanism that adjusts the supply to maintain balance, making ESD both an algorithmic stablecoin and an elastic supply stablecoin.

The core principles of ESD are "anonymity" and "self-interest," ensuring it remains pegged to the USD.

ESD has a USDC-ESD liquidity pool on Uniswap, which serves as its price oracle.