Startup Carbon announced the launch of the CarbonUSD stablecoin on the Ethereum blockchain. CarbonUSD is a compliant, price-stable token that is backed by the US dollar.
The press release details a new mechanism to transition to a hybrid algorithmic stable model once CarbonUSD reaches sufficient scale as a fully fixed token. To ensure such stability, the circulation of two coins is provided: the CarbonUSD stablecoin, with a one-to-one rate, and Carbon Credit, a token that regulates the rate of the first and “absorbs” exchange rate fluctuations in price.
In practice, such stablecoin support occurs through the reverse Dutch auction model. So, if the Carbon USD rate falls below $1, the “oracle” initiates the corresponding smart contract and schedules an auction for the sale and further burning of Carbon Credit. This is how the money supply is regulated and pressure is created on the exchange rate by reducing it. If the CarbonUSD stablecoin rate exceeds a given value, the auxiliary token is simply distributed among investors, reducing the rate.
The stablecoin is already available to institutional accounts, hedge funds and large traders. The company says it is actively promoting the token to exchange listings and will announce its first trading pair in the near future.
In addition, CarbonUSD will be traded directly on exchanges once it is listed.
The startup plans to expand the use of CarbonUSD, including low-fee cross-border money transfers and use as an alternative currency in developing countries.
CarbonUSD is currently running on the Ethereum network, but the developers plan to deploy their algorithmic stable protocol in the future on the high-performance Hedera network hashgraph, which is currently in development.
Despite the ongoing debate around reliability stablecons, Carbon was able to raise $2 million in its initial funding round on April 12th. The startup is confident that their offer is different from that of their competitors. The team's ambitious plans include creating a mechanism similar to that used by the Federal Reserve System, but completely decentralized.
You May Also Like
The market has returned to growth led by Bitcoin Cash, but a short-term rally is unlikely to materialize
Over the past 24 hours, the price of Bitcoin Cash has increased by 20% as a result of Bitmain's initial public offering (IPO). The rest of the cryptocurrency market remained relatively stable in the low price range. The cryptocurrency market valuation remained in the range of $114 to $115 billion, while the price of Bitcoin and ETH rose by 0.5%.
TokenPay: speculators and holders will destroy cryptocurrency
TokenPay believes that the crypto market is rigged, and most tokens are just casino chips. The authors of an undervalued, in their opinion, digital currency. express their opinion on what is happening in the crypto market.
