ChocoDoge, an NFT Gamefi project, announces the launch of USCD, the seigniorage stablecoin on the Dogechain.
ROAD TOWN, British Virgin Islands, Sept. 07, 2022 (GLOBE NEWSWIRE) — ChocoDoge, an NFT Gamefi project, announces the launch of USCD, the seigniorage stablecoin on the Dogechain. Stablecoins give crucial stability to investors and users in the volatile crypto market, especially in the defi sector. Currency-linked stablecoins are pegged to $1 and held by centralized third parties, contradicting the rationale of the world’s first cryptocurrency, whose primary purpose was to create an untouchable, decentralized monetary system.
Innovative algorithmic currencies maintain an eternally constant value by using unique algorithms and codes that change their total amount and do not require a reserve to maintain their base value.
The challenges that exist in the GameFi industry
Classic yield farming projects depend on the trust of their users. When something goes wrong on these platforms, either subjectively or objectively, it will create a snowball effect that makes the protocol less attractive and as a result most of these platforms tend to fail.
Most GameFi projects use a model to ensure their major investors and venture capitalists break even (and thus gain their trust, leading to more money for development) as quickly as possible. When the investment phase begins, it usually results in a quick sale.
Sometimes the pre-mint/pre-sale amount is so big that it messes up the entire game economy. The big investors and venture capitalists take their money and leave, leaving the developers and players with a broken, unfinished game and no money to finish it.
The vision behind ChocoDoge’s approach
ChocoDoge has chosen not to look for profits or useless metrics like a high TVL or unreasonable APR. The goal of the development process is to create a protocol that can be used for a long time, has a good return on investment and is secure.
The story goes on
With the mindset of a game studio, most of the money made from the protocol goes towards developing games. ChocoDoge adheres to the roadmap’s development milestones and hosts events and incentive programs to promote product awareness.
As the first GameFi project to use the Seigniorage stablecoin algorithm on Dogechain, ChocoDoge strives to constantly monitor and improve the economy in the ChocoDoge ecosystem in order not to lose control of inflation, which is the main problem faced by most Gamefi projects is on the market.
ChocoDoge has taken special care to improve security
In terms of safety, ChocoDoge is verified by the market leaders. This ensures that the smart contracts are secure and protects users from possible risks. There will also be a program to reward people who find bugs.
Technically, ChocoDoge will have a time lock. This means that several epochs (four in this case) must elapse before the smart contract can be modified. There will be no coin or withdrawal button on the Masterchef address.
To be frank and honest, the project’s documentation at docs.chocodoge.dog has all the information about it, including technical details, the address of the smart contract, and the tax rate. Important changes to the Terms and Conditions will also be shared on official social media pages.
Main components of the protocol
1. Tokens
There are three types of tokens. Let’s take a look at them:
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The USCD cash token is intended to be used as a means of buying and selling things. Using the successful methods of previous algorithmic tokens, the protocol has a built-in stability mechanism that attempts to keep the USCD binding at 1 USDC over time.
It’s also important to remember that while USCD actively permeates the algorithm, it doesn’t mean it will always be worth 1 USDC as it’s not collateralised. USCD is not a stablecoin backed by cryptocurrency or fiat money.
As more games and apps are added to ChocoDoge’s ecosystem, USCD can also be used to easily purchase things within games and apps.
ChocoDoge shares are a way to find out how much the ChocoDoge protocol is worth and how confident investors are that it will keep the USCD close to its peg (CD). Whenever an epoch grows, the protocol creates USCD and issues it proportionally to all CD owners who have placed their tokens in the BANK.
The primary purpose of ChocoDoge Bonds (USBD) is to encourage changes in the supply of USCDs during a time of epochal contraction. When USCD’s TWAP (Time Weighted Average Price) falls below 1 USDC, USBD are manufactured and can be purchased with USCD at the usual rate. When USCD tokens are phased out (deflation), the price of a USDC increases when they are exchanged for USBD.
If the price rises above the peg in the future, these USBD can be traded against USCD and there is an added incentive the longer they are held above the peg. When USCD is above the peg, it means there is inflation and selling pressure, pushing it towards 1 USDC.
2nd Bank
Any CD token holder (as long as the $USCD TWAP value is greater than $1 USDC) can stake their CD tokens here to win USCD at the end of each epoch. The hedge fund will use the newly issued USCDs for working capital, while the bank will use them as stimulus if it expands.
An epoch lasts four hours. CD payouts will be frozen for 12 epochs and USCD award claims will be frozen for 6 epochs if the user takes action.
At the beginning of each new epoch, the BANK performs a sweep to check the availability of USCD in its entirety.
What the BANK does next depends on the state of the USCD market:
3. Binding Mechanism
If the initial value of USCD is less than 1 USDC ($1) at the beginning of a cycle, the BANK will stop minting new USCD and USBD will be available for purchase. USBD can only be purchased together with the USCD.
Each USBD token represents at least one USCD token burned if the price falls below the peg. Use the following exchange rate when exchanging USBD to USCD:
1 USBD = [min(1.3;p)]^2 USCD
With p = USCD price at the time of the swap.
By comparing the current USCD price to 1.3 and selecting the lower of the two, consumers are guaranteed to exchange USBD for USCD with a maximum bonus percentage of 69% using the method above.
Bring away
ChocoDoge is committed to avoiding profit maximization and the pursuit of meaningless metrics such as high TVL and APR. The aim of the development phase is to provide a process that can be maintained over the long term and has reasonable profitability and safety. They did an excellent job of keeping the roadmap milestones on schedule and developing events and incentive plans to keep the products moving. They are committed to constantly monitoring and improving the economy of the ecosystem in order not to lose control of inflation, the main weakness of most GameFi projects on the market, and they were the first to implement the seigniorage stablecoin algorithm Dogechain used, which is why they deserve support.
To learn more about ChocoDoge, visit https://chocodoge.dog/
Twitter: https://twitter.com/ChocoDoge_
Telegram Channel: https://t.me/chocodogechannel
Telegram Chat: https://t.me/ChocoDogeChat
Disclaimer: This article does not contain an offer to sell, a solicitation of an offer to buy, or a recommendation for any securities or other products or services. This is not investment advice. Please do your own research.
Media contact:
Contact: Isaac Smith
Company: ChocoDoge
Email: [email protected]
City: Toronto, Canada
Website: https://chocodoge.dog/
Newsroom: socials.submitmypressrelease.com
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