Thanks! We appreciate your feedback  Yes, there will be a bounty campaign for further development of project  We will announce it in the following weeks... Stay tuned 

SIMPLE WAY TO CREATE STABLE TOKENS
PERSONAL LOAN WITH LIFO COLLATERAL

No matter where you are, the simplest way to come into possession of Stable Tokens is, of course, to borrow them. In order to personally borrow them, you only have to have a certain guarantee. What would be logical in the world of cryptocurrency is to guarantee and deposit a second crypto currency for borrowing the first at a negotiated proportion and on a decentralized network which can execute this for all users equally by using independent Smart Contract. 

In that way we get a Stable Token personal loan with LIFO collateral ETH , by the agreed proportion — repo rate. That represents the unique method for any user on Ethereum decentralized network to execute collateral of its ETH for Stable Token through the Smart Contract...

Stable Token System is fixed priced and liquid if every peer on the network have fixed exchange rate and reserve on the smart contract at all time.

Only all peers together can make Stable Token in a trustworthy and distributed network like Ethereum!
But the most complicated part is to actually create Stable Tokens...

We do not want full coverage but the focus is on a fixed proportion.

Fixed proportion can be maintained if you constantly monitor the proportion of USD/ETH, and for that, you do not need full coverage, but you have to be careful of the speculations that are decreasing proportion.

The solution lies in centralized personal conversion in a decentralized public smart contracts! Smart contract gives us TRUST. Personal conversion gives us LIQUIDITY! 

Economic conclusion:

1. Fixed proportion is not the same as fully backed
2. Token cannot be fully backed, if it isn’t 100% directly covered in fiat USD
3. Token should not be fully backed to have the value of one USD

STABILITY = fixed exchange rate +convertibility +high external reserve at the margin


1. fixed exchange rate can be ETH/USD=ETH/ST
Users can send when they want and how much they want ETH to personal conversion smart contract to change them for minted Stable Tokens ST.
 
2. convertibility can be personal conversion on the smart contract ETH to ST and ST to ETH
User can do buyback of all ETH on personal conversion smart contract by the same peer if he sends Stable Tokens ST to burn them on the smart contract and no one else can buyback his ETH.

3. high external reserve at the margin can be ST=ETH+derivative1+derivative2…derivativeN on the smart contract
Personal collateral smart contract gives every user personal liquidity by safe keeping input amount of ETH and preserving minted amount of derivative1, derivative2….derivativeN in the trusted smart contract custodian. The only challenge is to determine the derivatives.

Another way to get USD convertible coin is to focus on currency board and fixed proportion.

A currency board is an institution that issues currency that is freely convertible, at a fixed rate, into an external reserve asset. Also currency board must hold 100 percent foreign reserve ratio at the margin — not necessarily 100 percent total reserves. This results from the fact that a currency board cannot independently influence the money supply and cannot engage in any type of discretionary monetary policy, like we can not engage in USD money supply. A currency board is a monetary authority that maintains a fixed exchange rate with an anchor currency.

To have USD convertible coin it must be:

1. fully backed, 100% in fiat USD,
2. freely convertible,
3. changeable directly to fiat USD

If we want to be fully backed in fiat USD currency we must work like Tether LTD does. But we do not want to be like Tether! We do not want to have full backing in fiat USD like Tether has, because of this:

Freely convertible currencies have the immediate value on the foreign exchange market, and few restrictions on the manner and amount that can be traded for another currency.

Free convertibility is a major feature of a hard currency. Convertibility first became an issue of significance during the time banknotes began to replace commodity money in the money supply.

Under the contemporary international currency regimes, all currencies’ inherent value derives from fiat, thus there is no longer any thing (gold or other tangible store of value) for which paper notes can be redeemed.

What is convertibility? 

Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged. 

OUR PROJECT  

COIN PAYMENT PROCESSOR

CP Processor (cPRO) & Stable Tokens+Supplements — crypto collateral adjustment
Market cap = activating in Q2.2018

CP Processor will go beyond all of the above mentioned projects in order to achieve a higher goal — “world’s single coin” with a global open payment protocol (GOPP). Also, CP Processor by default integrated almost all process and functions that we can find here.

The most interesting thing is that this project will link missing parts and use a sinergy to create a new dimension of global payments, and the Stable Token System is just the first stage of that road.

OUR COMPETITION

USDX — crypto collateral adjustment
Market cap = not active

The project will roll out in two phases by Q2.2019. Phase 1) Tokens will be produced as Ethereum ERC20 tokens called USDX. Anyone can join USDX’s ecosystem to contribute to the ICO. Phase 2) An independent public chain will be called USDY. Previous USDX token holders will be awarded USDY equal to their USDX, then enjoy “the ultimate stabilization reached by its self-balancing mechanism. After phase 2, USDX will implement intelligent algorithmic monetary control. The algorithm will adjust the total quantity of money in the economy (M). It will also adjust the velocity of money (V). Diversified mechanisms will adjust M and V. Those diversified mechanisms include a variable block reward, a mining lock, and a variable transaction fee. USDX is finite and does not have the self-balancing mechanism of a Stablecoin. USDX will be traded on the open market and the price will be free to rise and fall to reflect market expectations.

The most interesting thing is that this project will create own public blockchain based on proof of stake with high transaction speeds.

OUR COMPETITION

Havven (HAV) & nomin — crypto collateral
Market cap = about 30 mil.USD

Havven is a decentralised payment network where transaction fees are collected from users of the network. These fees are allocated to collateral token holders, which is where the collateral token derives its value. There are two tokens in the system: havvens, the collateral token; and nomins, the stablecoin. Nomins are backed by havven tokens, as nomins can only be issued by locking havvens into a smart contract. Against the value of havvens a fraction of nomins can be issued, which ensures the network is overcollateralized and is resistant to price shocks. They establish the initial value of the system through a token sale. Because there are no transactions yet, participants in the sale are predicting the value of the Havven network, factoring in some risk premium. Collateral tokens are purchased on the basis that if the network grows and transaction fees increase, the value of the collateral token will increase and users will be rewarded for collateralising the system.

The most interesting thing is that this project will create a stable token exclusively with the supply and collateral of its own token that builds value based on the transaction fees.

OUR COMPETITION

Basecoin — non collateral adjustment
Market cap = private funds 125mil.USD

Basecoin uses a three-token model, which includes Base Share, Basecoin and Base Bond. The supply of Basecoin is elastic while the supply of Base Share is fixed. When the supply of Basecoin contracts, it triggers the Base Bonds to recycle and destroy the Basecoin. When the Basecoin supply expands, the new Basecoin repays the Base Bonds and the rest is assigned to the Base Shareholders. Three-token models present complex problems when traded on exchanges and implement network effect so they are not in public use yet.

The most interesting thing is that this project was first to include the supply-demand adjustment in the price stabilization process as well as “signorated share” principles.

Thanks! Appreciate the feedback We are preparing many exciting things for the following period! Stay tuned 

OUR COMPETITION

MakerDAO & DAI — crypto collateral
Market cap = about 500 mil.USD

Maker is able to maintain the price stability of the Dai through the Dai Credit System, which backs the Dai with collateral stored in Ethereum smart contracts, while simultaneously functioning as an internet-based, p2p credit market that commoditizes credit by allowing anyone with valid collateral to take out loans that have low transaction costs and no middle man fees. Anyone can generate Dai on the Maker platform with a collateral value of twice Dai’s Pooled Ether (PETH).

The most interesting thing is that the stable token DAI in practice has the role of ETH LONG leverage and in other words serves as some kind of ETH CALL Option.

OUR COMPETITION

Tether (USDT) — fiat collateral
Market cap = more than 2 bil.USD

Claiming that every USDT has one USD as reserve stored in Tether’s bank account. This guarantees Tether’s ability to redeem the legal currency at any time. Yet the model is 100% centralized because the company is in full control of the money supply and reserves. Because its US dollar reserve must be stored in regulated bank accounts, it is subject to government regulations.
The most interesting thing is that the Bitfinex exchange, which, incidentally, controls the work of the company Tether Ltd, after the termination of cooperation with banks has incorporated and introduced the use of USDT, and managed to impose the dominance of USDT as the only stable coin for all other crypto exchanges.