What is Algorithmic Stablecoin ?
Seigniorage or Algorithmic StableCoins are the stable coins that are
designed to Expand or Contract their supply according to the
Demand & Supply of the market.
Before getting into Algo Stablecoins, let’s understand what are
stablecoins in short, Stablecoins are acting the same as a fiat
currency in Crypto Space, you can say it a Fiat Currency of Crypto
Space in Digital Form. These coins are generally backed by the Fiat
Currency of the particular country like (USDT by Dollars) or other
Cryptocurrencies or Some Precious Metals.
USDT (Tether) is one of the most popular Stablecoin in #Crypto
Space, One unit of a #Stablecoin equals $1. Algo-StableCoins
method uses ‘Smart Contracts’ that automatically expand and
contract the supply using algorithms to maintain value.
Said StableCoin has a $1 value. The price drops to $0.80, indicating
the supply of StableCoins is higher than the demand. The algorithm
uses seigniorage to buy ‘said’ StableCoin, thereby decreasing supply
and pushing the price back to $1.
Users are essentially investing in the coins. When said StableCoin
trades above $1, the algorithm issues additional tokens increasing
supply until the price returns to $1.
What is bDollar?
bDollar is the first algorithmic stablecoin on Binance Smart Chain with
an innovative solution that can adjust its supply deterministically to
move the price of the token in the direction of a target price to bring
programmability and interoperability to DeFi.
Inspired by Basis and its predecessors, bDollar is a multi-token
protocol that consists of three tokens: BDO (the algorithmic
stablecoin), bDollar Shares (or sBDO, which holders can claim BDO
inflation when the network expands), and bDollar Bonds (or bBDO,
which can be purchased at a discount rate when the network is in
contraction and can be redeemed for BDO when the network comes
to its deflationary phase and price goes below 1$).
- Epoch Duration: 6 hours
- Rebase/Expansion Amount: Up to 3%
- Supply/Reward Mechanism: All parameters will be votable
on-chain by governance
- No expiry for Bonds
- Community vote’s pool — new pools will be open based on the community’s vote
bDollar Token Distribution
- Max supply: 210,000 BD)
- Distribution period: 3 weeks
- First week: 80,000 BDO
- Second week: 60,000 BDO
- Third week: 40,000 BDO
Airdrop: 30,000 BDO (BNB, BUSD, CAKE, BFI, BFIE, ESD, BAC,
and VALUE) #hodlers can claim BDO by connecting your wallet
The airdrop is organized on a first come — first serve basis, until the
whole 30k BDO is fully distributed. Each wallet can claim a maximum
of 2 BDO while upNdown’s users will be entitled to claim 5 BDO.
bDollar Shares Distribution
sBDO has a maximum total supply of 100,000 tokens. 15,000 sBDO are allocated to the team and DAO (7,500 each) and vested linearly over 12 months. The remaining 85,000 sBDO are allocated for incentivizing Liquidity Providers in 2 pools, as follows:
Pancakeswap LPs BDO/BUSD: 50,000
Pancakeswap LPs sBDO/BUSD: 35,000
Duration: 12 months
Why should you hold bDollar, sBDO?
- bDollar is the first algorithmic stablecoin on BSC
- DAO FUND: after verifying mutisign, DAO FUND belongs to the
Community. This Fund can help control price BDO better,
buyback BDO when price lower 1 $
- Expansion total BDO supply up 3%. It is a huge profit with
- BDO, sBDO is a part of BEARN FINANCE with Cross Chain
Yield farming, Vault, Game, algorithmic stable coin
- Building on BSC is a good way to spread this project over the
world. BSC has supported by Binance, cheap gas, very fast
speed. Project run on BSC is a hot trend right now.
- Everything is decentralized.