No Collateral, No Peg

A synthetic stable with a free float

Free markets decide what the value of the asset should be. Artificial pegs forcing restrictions with fluctuating wallet balances bring issues worse than fiat. Do not replicate Fiat.
Create better.

LITEPAPER

What is XStable?

XStable is a synthetic stablecoin protocol that derives it's supply and price values from true market demand.

It allows the market to freely drive its value, while using a part of that information to adjust its supply to create an equilibrium between value and supply.

  • Rewards the holders by steadily increasing equity.
  • Provides a volatility hedge against a basket of assets.
  • Accounts for time localized demand and supply shocks.
Learn More

How It Works?

1
Targeted Asset Liquidity

Create XST-ASSET AMM pools for assets targeted to provide volatility reduction against. These pools will support the protocol features such as supply expansion and burn.

Demand triggers Expansion

Any buy order in supported pools, which is the indicator of demand triggers a minimum of 1% supply expansion that is distributed to all the holder wallets instantly as part of the same transaction.

2
3
Lack of Demand triggers Contraction

Any sell order in supported pools and all transactions elsewhere, are taxed by at least 1% to the seller as network utility fee and is burned permanently causing a supply contraction.

Liquidity Accumulation

Balanced levels of liquidity needs to be managed across the chosen pools to achieve a balanced volatility hedge. A 0.5% tax on sells and other transfers to unsupported pools is charged. This is converted to permanently locked liquidity in the pool that is lagging in liquidity.

4
5
Counteracting Time-localized Shocks

Quadratic expansion and contraction functions provide accelerating incentives to hold or sell, the further it destablizes from equilibrium in each epoch.

Stabilization Reserve

2.5% of each supply inflation goes into a stabilization reserve. This steadily grows over time and is used to market buy or sell XST when the demand or supply shock is substanitally larger and cannot be counteracted solely with incentives.

6

Why it Works

Epoch based elastic supply that maintains stability in balances, time localized price and holder equity targets true stability. Before an equilibrium phase is achieved, a set of expansion and contraction phases will take place due to fluctuating market demand. “Holders” or participants of the XStable ecosystem increase their net equity during these phases while market searches for the equilibrium in price.

Equilibrium

X buys 100 XST from the market pool. 1% of this tx, which is 1 XST is newly minted and distributed to all the holders.

Y sells 100 XST to the market pool. 1% of this tx, which is 1 XST is taxed from Y as utility fee and is burned.

There is no net increase in the price of XST or the supply. However, the asset holders have a slight increase in their total value derived from the sellers who exit the XStable ecosystem.

Expansion Phase

X buys 1000 XST from the market pool. 20% of this tx, which is 200 XST is newly minted and distributed to all the holders.

Y sells 100 XST to the market pool. 1% of this tx, which is 1 XST is taxed from Y as utility fee and is burned.

There is a net increase in both the price of XST and supply. Holders gain an equitable part of this net increase.

Contraction Phase

X buys 100 XST from the market pool. 1% of this tx, which is 1 XST is newly minted and distributed to all the holders.

Y sells 1000 XST to the market pool. 10% of this tx, which is 100 XST is taxed from Y as utility fee and is burned.

There is a net decrease in both the price of XST and supply. The equity of holders in the overall supply has gone up as their XST balance stays constant while the total supply has contracted.

Tokenomics

30% - Liquidity Pool
20% - Ecosystem
20% - Team
10% - Presale
10% - Marketing
10% - Community Rewards

Use Cases

Unlike typical rebase coins that come with fluctuating balances or seigniorage coins that dilute holders' equity similar to Fiat, XStable is an elastic money protocol that increases holder's equity over time and designed to get to a stable value over long term. This has enormous use cases in the defi ecosystem both as collateral as well as a stable lendable asset.

Store of Value

Steadily increasing holders equity creates a value storage and sustenance mechanism.

Volatility Hedge

With carefully selected pools and a stabilization algorithm, this works as a strong volatility hedge against a basket of assets.

Defi Building Block

An algorithmic stable protocol that does not overtly oscillate in net value in rebase cycles is attractive as a reserve collateral in defi protocols.