What's free mining? When linking digital assets to the price of specific goods or services, non-overcollateralized algorithmic stablecoins have always been the final goal pursued by everyone. Generally speaking, the stability of these assets is completely driven by the market supply and demand mechanism and a reasonable coins model. The optimized combination will eventually push the price to an ideal state.
Huobi Coins (HT) is a fundamental asset on the Huobi Eco-Chain (HECO). With the continuous development of the HECO ecosystem, a digital asset that anchors the issuance of HT will unavoidable be needed to meet the growing demand for transactions. From the other side, the transaction is completely completed on HECO. Compared with the high GAS fee on the ETH chain, the transaction fee on HECO is lower and faster. From the other side, digital assets anchored to the US dollar and gold will depreciate with the issuance of anchors, and the total amount of HT is constant, so there is no problem of devaluation and free mining.
To this end, we propose an experimental innovative stablecoin project: HT ANCHOR CASH, which anchors HT and is an improved version of Basis Protocol. The main improvements are as follows:
The price feeding mechanism is based on the 12-hour weighted average price of the HT-HTC trading pair on the decentralized exchange to reduce the risk of price manipulation;
The rebase time is adjusted to once every 12 hours, at 8 o'clock and 20 o'clock Beijing time respectively; the number of coins for each rebase is adjusted to: 95% of the total amount distributed in each rebase, and the other 5% goes to the treasury instead of the original 100%. The adjustment here can make the treasury more profitable and compulsorily redeem HTB bonds. When the price of HTC is lower than 1 HT, it will better encourage miners to exchange bonds and maintain balance.
The transaction price of stablecoins within a certain minting time reaches 1.1HT (not the original 1.05), and additional issuance will be carried out to strengthen the stability of the additional issuance rate; extend stablecoin mining pool time, support more HRC20 currency free mining, and enhance consensus.
**HT ANCHOR CASH coins economics**
There are three coins in the HT ANCHOR CASH protocol, namely HTC (HT ANCHOR CASH), HTS (HT ANCHOR Share) and HTB (HT ANCHOR Bond). HTC and HTS can be obtained by providing liquidity mining pool, among which HTC value is anchored at 1HT, HTS holders participate in board pledge to obtain the premium income generated by HTC after inflation, and the board of directors will be opened 4 days after the project opens. HTB is a bond issued when the price of HTC is less than 1HT to repurchase HTC. When HTC is greater than 1.1HT, HTB holders can exchange HTC 1:1. The HT ANCHOR CASH agreement not only guarantees economic flexibility but also can fully attract a wide range of audiences, and better empowers HT and HECO.
**HT ANCHOR CASH stabilization mechanism**
The HT ANCHOR CASH protocol will set the threshold of coins price stability (here, 1HT and 1.1HT), and the corresponding stability mechanism will be triggered when it is higher than 1.1HT or lower than 1HT.
**Deflation phase-when HTC price is lower than 1HT**
When the price of HTC is lower than 1HT, participants can use HTC to buy HTB at a discount. According to the principle of supply and demand, the decrease in HTC supply will cause its price to rise.
When the price rises to> 1HT, the HTB purchased at the original discount can be exchanged back to HTC 1:1, and the premium generated in the middle is the income of the participants. When some participants exchange the HTC by selling the HTC, the premium gradually decreases, and the HTC price gradually Return to 1HT.
When participants exchange HTC for HTB, the HTC used for the exchange will be destroyed, resulting in deflation. Here HT ANCHOR BOND does not incur interest expenses.
Note: Only when HTC price> 1HT can HTB be exchanged for HTC at a ratio of 1:1 to prevent the increase in HTC supply during the deflation phase.
**Inflation phase — when HTC price is higher than 1HT**
When the price of HTC is higher than 1HT, according to the principle of supply and demand, increasing the total supply of HTC can make HTC return to 1HT. In this inflation stage, participants can exchange HTB into HTC at a price of 1:1. If the transaction price of HTC reaches 1.1 HT within a certain minting time, more HTC minted will be allocated to the HTS coins holders pledged in the HTC Boardroom.
**Coins distribution plan**
HTC has no pre-mining or free mining, fair pledge distribution. HT ANCHOR CASH opened 11 initial mining pools, users can pledge HT, HUSD, HBTC, HETH, HLTC, HBCH, HDOT, HBSV, HFIL, decentralized exchange coins RAB and algorithmic stable currency BAG, a total of 11 types of HRC-20 Assets participate in HTC mining.
The total supply of HTC is 11,000. As a reward, it is fairly distributed to each mining pool. Each mining pool can mine 1,000 HTC for 10 days, and each mining pool produces 100 coins per day.
HTS distribution will start immediately after HTC starts to distribute, totaling 2,480,001, of which 9% will be allocated to DAO and technology development team, 11% will be given to early investors, 4% will be used for market promotion and centralized exchange listing, 1 As the initial liquidity is added to the flow pool, 2 million pieces are produced by free mining and distributed to 4 mining pools:
HTC-HT-LP mining pool allocated 750,000 pieces
HTS-HT-LP mining pool allocated 250,000 pieces
HTC-HUSD-LP mining pool allocates 750,000 coins
HTS-HUSD-LP distribution of 250,000 coins
The HTC-HT-LP mining pool and HTC-HUSD-LP mining pool will distribute 187,500 HTCs in the first 30 days, and the reward will be 75% of the previous 30 days every 30 days thereafter.
The key point of this design plan is to make the price linkage between HTC and HT closer, and increase the arbitrage space:
When the exchange ratio of HT to HUSD increases, the price of the HTC-HUSD trading pair on the decentralized exchange will have a short-term low price. Users can choose to buy HTC with HUSD and sell arbitrage in the HTC-HT pool.
When the exchange ratio of HT to HUSD drops, the price of the HTC-HUSD trading pair will have a short-term high price. Users can choose to buy HTC with HT in the HTC-HT trading pair and sell arbitrage in the HTC-HUSD trading pair.
**Join the community and participate in governance**
The launch of HT ANCHOR CASH on the Huobi Smart Chain is a great recognition of HECO's leading position in the DeFi industry. Here, we invite every participant and user in Huobi, HECO and other DeFi ecosystems to come Participate in the mining pool and subsequent construction of HT ANCHOR CASH. We will definitely become a pivotal player in the DeFi and HECO ecosystem.