[ANN] *** STABLE TOKENS the HOLY GRAIL of CRYPTO *** [ANN]

[CP_Processor]

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.

[CP_Processor]

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.

[CP_Processor]

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. 

[CP_Processor]

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.

[CP_Processor]

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:

[CP_Processor]

[CP_Processor]

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.

[CP_Processor]

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.

[CP_Processor]

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

[CP_Processor]

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! 

[CP_Processor]

[CP_Processor]

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...

[Anthomy]

Hello and congrats on the awesome project. Is there going to be a bounty campaign?

[CP_Processor]

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...

[CP_Processor]

Hello and congrats on the awesome project. Is there going to be a bounty campaign?

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 

[CP_Processor]

SIMPLE WAY TO CREATE STABLE TOKENS
PERSONAL LOAN WITH LIFO COLLATERAL

...This personal loan would be transacted by the agreed proportion, e.i. repo rate. In case that Stable Token is pegged to USD in proportion 1:1, then the repo price would be iETH Price Index iETH/USD and pegged exclusively for the specific user, that is, its public address.

During this procedure, personal collateral would create-mint, through Smart Contract, specific number of new Stable Tokens, that would, in this case, automatically receive value 1:1 in relation to USD.

In this initial process of creating Stable Tokens, converted value is the same as the value of USD, and it cannot be changed over time. With this procedure of initial creation, Stable Tokens confirm their fixed value that simultaneously represent the possibility to make payments with them for various goods and services.

For the whole article, visit https://medium.com/cp-processor/simple-way-to-create-stable-tokens-9a703c1d59fc

[CP_Processor]

SIMPLE WAY TO CREATE STABLE TOKENS
PERSONAL LOAN WITH LIFO COLLATERAL

The procedure of closing the personal loan position is simple and it creates the possibility to make a refund of borrowed Stable Tokens with the release of the guarantee — ETH stocked by the LIFO method (last in first out).
That means that the user can have multiple active personal loans, and perform closing starting from the last opened loan made at the repo rate and proportion that was valid on the public Smart Contract with the safe custodian that is not privately owned.

[kovlozula]

Looks interesting! I think this will be one of the most promising projects but need to know more a bit. Waiting for more information and if there's a bounty program I would love to help spread the world 

[CP_Processor]

Looks interesting! I think this will be one of the most promising projects but need to know more a bit. Waiting for more information and if there's a bounty program I would love to help spread the world 

Thanks! We share your enthusiasm!  All you need to know about this project and bounty program will be announced in this topic So, stick around! We appreciate your support 

[CP_Processor]

Characteristics of this theory are:

1. the system is always backed (the number of Stable Tokens minted is the same number that can be retrieved at any moment)
2. the system has neither a surplus nor a shortage, because it is based on a constant proportion of exchange and not on a collateral.
3. market cap of the collateral would not be calculated by the current market rate but as a sum of all personal collateral prices.
4. expiration date of the loan would be unlimited as well as the amount that can be borrowed