# 📚 Introduction

The Hodl DAO is a decentralized protocol that provides a less-volatile BTCH index, which is pegged to a 365-day moving average price of BTC, for users to get access to a less volatile BTC exposure, in an easy, and trustless way, while at the same time, enjoying extra rewards. 

The Hodl DAO gives birth to the BTCH index, which is designed to be relatively stable and has significantly lower volatility. The BTCH index is pegged to a 365-day moving average price of BTC and is designed to follow the increasing value of BTC over time.

BTCH is stabilised and pegged through the rebalance of a Protocol Owned Liquidity pool and is, in part, supported by a Vault of BTC. The protocol will continuously accumulate BTC by selling bonds.

The long-term value increase of BTCH is backed by the BTC value increase in the treasury. During price volatility, the value of BTCH may not be 100% backed and to encourage the investor to HODL, staking rewards will be distributed when rebalancing and bond selling.

In short, the BTCH index keeps itself pegged to a 365-day moving average price of BTC through rebalancing and distributes rewards to stakers through an OHM-like mechanism.