YVC Currency deployment!
After a long gap in our deployment/engagement with our project, we’re finally back!
Today, we approach the deployment of a key element in our platform: the in-game cross-project currency. A detailed read on what the currency purpose is and how the supply will be regulated by players can be found in our official documentation.
In short, we’d like to summarize two key points:
- Currency token will neither moon nor fall to zero
It is technically impossible for YVC price to fall below 0.05 USDC. Each YVC Coin is backed by 0.05 USDC, securely held in a Currency Distributor Smart Contract. Users on the Hedera Blockchain can exchange YVC tokens for a refund of 5 USDC per 100 coins. While SaucerSwap’s market controls the price, if it drops below 5 USDC for 100 YVC, users can purchase from the free market and refund it for more USDC using our distributor. This creates a safety net, ensuring the price never dips below 0.05 USDC. It is important to understand this, because the price on SaucerSwap is still naturally controlled by market so if the price ever goes below 5 USDC : 100 YVC, anyone will able to buy as much as they want from free market and then refund it back for more USDC with our distributor.
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Similarly, Currency will not moon. Many Govt Token speculators incorrectly called Govt Token a stable coin. It is not so; the price is stable due to release schedule. Compared to Govt Token, YVC is in fact somewhat stable. Its entire supply is minted by players and therefore there’s a controlled volume of tokens available on free market. This also means both mint cost and burn refund price dictate minimum and maximum price of Currency Token opening up a perfect window for speculators to valuate risks and potential gains. For example, if price of 100 YVC is 6 USDC on saucerswap, maximum potential loss on YVC purchase is only -16% since the price cannot fall below 5 USDC. On other hand potential gain on YVC price jump is realistically up to +50% creating a risk ratio of 1:3.
2. . YVCurrency pairs and swap liquidity may be unstable
Due to the player-controlled YVC supply, defining a stable volume of currency in the free market is challenging. Anyone can influence the market by buying up the entire supply or minting a significant amount, causing liquidity fluctuations. However, the controlled price instability allows users to support the price floor and reinforce the price ceiling by transacting with our currency distributor contract. As YVC supply is entirely player-controlled, ensuring a stable volume of currency in the free market is impractical.
3. YVC at the moment will be burned and minted only using USDC[hts]
While Governance Tokens are paired against any token on a free market, YVC will be paired with non-Hedera origin USDC in distributor contract by default. There are 2 main reasons behind this. “Domestic” USDC has freeze keys due to government regulations potentially causing accessibility issues for the currency. Our distribution contract is outside of our control and is fully self-governed, freeze of assets would cause entire currency backing to be temporary inaccessible and therefore currency “floor price” will be breached due to economic conditions. As such, we chose to pair against [hts], much less controllable stable coin.
Second reason to use [hts] ported USDC over domestic coin is it’s “cross chain” nature.
In a similar fashion, our currency should be interoperable in the future.
The deployment and initial swap pairs will be initiated in upcoming week!
