What is unique about TiUSD
Last updated
Last updated
The very nature of decentralized stablecoins is to maintain a stable price by automatically adapting the stablecoin supply to meet demand. TiTi’s most unique feature is that it can improve decentralized stablecoins’ liquidity and user adoption on the premise of ensuring stability. And all the keys to achieve all this are several core innovation modules of TiTi Protocol.
New stablecoin issuance paradigm, TiTi-AMMs, greatly boost stablecoin onchain liquidity, increase capital efficiency and free from impermanent loss. It is the module where TiUSD are issued and burned, controlling TiUSD inflation and deflation. It is impermanence loss free and has tripe mining rewards, due to our unique liquidity rebalance algorithm. Stablecoin users need not to worry about their assets being liquidated. All they need to do is swap and swap back. Liquidity Providers also don’t need to open a position for TiUSD when they would like to participate in liquidity mining. They just need to provide single sided liquidity to TiTi-AMMs, because the protocol will do the math and mint equal value of TiUSD for them, these TiUSD will be stored in the trading pairs enhancing the liquidity. We call this model Market Marker Fund (MMF). That’s why we say TiTi-AMMs will boost TiUSD liquidity, because it greatly improves capital efficiency than the normal AMMs.
It can effectively or suppress single-point risks, because no matter in the long-term or in the short-term, the stablecoin issued by the Protocol is always able to be guaranteed by the corresponding crypto assets with more than $1, and this data is completely on-chain, transparent and easy to gain users’ confidence. Because, the core stability mechanism allows users to exchange stablecoins with assets worth about $1. However, unlike the designs of Maker and Fei, it does so to allow all risk in the reserves to be dispersed. Stablecoin is not relying entirely on custodial stablecoins, and maintaining some resilience even as the value of the reserves fluctuates and flexibility to survive. The cherry on top is that it can break the upper limit of the issuance of native cryptocurrencies.
Multi-Asset Reserve ensures stability and raises the upper limit for the issuance size. To begin with, it needs to be clear that TiTi Protocol is not a pure algorithmic stablecoin. It is more like a decentralized, multiple crypto assets backed, not collateralized, stablecoin whose supply and demand is adjusted by an algorithm. Unlike Ampleforth and YAM, who are purely controlled by algorithms and rely entirely on the stability mechanism of the Game Theory, which cannot be durable and bears great potential risks. Instead of just using algorithm, each and every TiUSD, the stablecoin issued by TiTi Protocol, is supported by sufficient crypto Assets in the reserve, such as WBTC, ETH, USDC etc. and supported by the continuous yields from Rainy Day Fund, the robustness of the protocol in dealing with the risks of market fluctuations in Reserve Assets has been improved, allowing the protocol to introduce Multi Crypto Assets as Reserves, so this Addresses two of the most important issues in the algo stablecoins race: stability and liquidity.
The Reorders can cohesively make TiUSD pegging to $1 via reshape liquidity pairs value. TiTi maintains price anchoring Dynamically and effectively adjusts the supply and demand of the primary and secondary markets of stablecoins through a new supply and demand algorithm, the Reorders. TiTi induces a peg coordination mechanism, which fosters high liquidity around the peg, while curtailing speculative attacks and bank run effects with Reorders and Rain Day Fund in case coordination breaks. The cherry on top is that, another exciting function of the Orders is that the Reorders can curtail speculative and arbitrage from taking transaction slippage. Instead, the Reorder will proactively collect the slippage and distribute to Rain Day Fund and Protocol fee, thus benefit protocol users rather than speculators.
Compared with the current stablecoin pegging mechanism, e.g. the Rebase, Reweight, the Reorders’ triggering conditions are more easily predictable and more precise. It can be triggered when 5% away from peg, or every 30 mins instead of 8hs, or 12hs, which are far too late to restore pegging and gain user confidence. Recapitalizing Multi-asset ReserveTiTi’s Multi-asset Reserve can be recapitalized or restored through Reorders. Because for each reorder, the slippage will be allocated to Rain Day Fund.
Use-to-earn, the first ever stablecoin tokenomic design that will tremendously boost algorithmic stablecoin user adoption. The user adoption for major algorithmic stablecoin is the core for the organic market growth. TiTi invented the first ever Use-To-Earn mechanism to ensure the organic adoption of algorithm stablecoin, which will significantly boost TiUSD’s market competitive advantage and beyond. Use-to-earn is a brand new stablecoin earning concept, it’s short for using stablecoin to earn protocol fee passively and proactively. To be specific, use-to-earn means that users can earn protocol fees by holding or using TiUSD. It seems that there is not much difference if users are using TiUSD or every other stablecoin & token as they usually do, trading, transferring, staking or asset hedge.
However, if you dive in deep, you will know that TiUSD is actually an inherently interest-bearing algorithmic stablecoin. Because, TiUSD users or holders can claim extra rewards, the protocol fee, in a totally decentralized merkle proof way. At the same time, the technical architecture also guarantees the distribution of protocol fees can be adaptable to more complex incentive models, which also provides greater flexibility for TiTi Protocol’s organic growth and expansion. For example, just like play-to-earn, the use-to-earn rewards can be distributed to users by , or targeted incentives to use TiUSD to an external transactions behaviors in the product, etc. The technical solution of Use-To-Earn is based on Merkle Proof to verify users’ reward distribution on chains. The off-chain part is responsible for the calculation of rewards according to how users are using TiUSD. The use-to-earn rewards algorithm and distribution pattern are mainly judged by how users’ using TiUSD in the crypto world. The use-to-earn algorithm and distribution pattern are designed and adopted based on the protocol’s organic growth in the early stage, and will be fully determined by TiTi DAO in the later stage.
