... grown from $18B to $300B+ since the start of 2017. Yet cryptocurrencies still represent a fraction of a percent of t
What is a stablecoin? “A stablecoin is an asset that has price stability characteristics that make it suitable for short-term and medium-term use as a unit of account and store of value.” - Nick Tomaino
Crypto Market Cap
Rapid Expansion
Comparison
$400 B
Crypto
$300B
$300 B
$200B
$100B
USD
Gold
$8.2T
$150B
$1.5T
$18B January 2017
September 2017
November 2017
The cryptocurrency market has grown from $18B to $300B+ since the start of 2017. Yet cryptocurrencies still represent a fraction of a percent of the value of gold and USD.
Volatility Limits Uptake
The cryptocurrency market is growing rapidly, but volatility prevents cryptocurrencies from being used for everyday transactions.
Money Over Time
Money has changed dramatically over the course of history:
→
Barter
→
Commodity
→
Representative
→
Fiat
Cryptocurrencies
In order for cryptocurrencies to gain wider adoption we need solutions for everyday transactions.
Commodity Money When designing the ideal form of money we can use assets such as gold:
$1
D
L GO
$1
$1
→$1
$1
$1
$1
$1
$1
$1
$1
$1
$100m
100m gold coins
The problem is that as the price of gold changes, the value of each coin changes.
$1
$1
≠ $1 Time →
Representative Money We can issue notes redeemable for $1 of gold, so even if the price of gold changes, the value of each note remains the same:
D
L GO $100m
→
$1
$1
$1
$1
100m gold-backed notes
The problem is that if the gold is seized, lost or stolen, the notes are worthless.
Fiat Money The transition from representative money to fiat money has taken us in a dangerous direction:
$1
$1
$1
$1
Paper notes backed by nothing
This is a great system as long as you run a central bank, because you can print as much money as you want.
Cryptoeconomics is the Solution A Distributed Monetary System Like representative money we use collateral to back our currency, but instead of a physical asset, we use the value of the system itself:
H AV V E N P L AT F O R M
$1B
$1
$1 $1$1
$1$1
$1
$1
→ $1
$1 $1$1
$1$1
$1
$1
$1
$1 $1$1
$1$1
$1
$1
1 B x $ 1 To k e n s
The value of each stablecoin is now maintained by the collateral of the entire system.
Smart Contracts The system uses smart contracts to maintain the equilibrium of the platform and the price of the stablecoin:
H AV V E N P L AT F O R M
Increase To k e n s
Decrease To k e n s
As the value of the system changes, smart contracts adjust the number of stablecoins in circulation.
Havven Valuation The system collects transaction fees from users, distributing these fees to the holders of the collateral token. This collateral token backs the issuance of the stablecoin. As transaction volumes increase, the value the collateral tokens will grow in line with the increasing utility of the system.
Go-To-Market Strategy As with any new technology, wide adoption is critical to achieving its potential. To drive initial adoption, we plan to target decentralised platforms that cannot accept fiat currency. From there use cases such as overseas money transfer and online retail can be implemented.
Once the platform has been established and wider adoption has been reached the potential uses for a stable cryptocurrency are almost unlimited.
