- VDF Powered Time Lock Weighted Average based Stationary Stablecoin Streaming Network
Stablility of Money and Money Markets is quite closely connected with the circulation in the dimensions of time and space. Most of the cases we measure money markets in a geographic and demographic distribution of markets alone. Time becomes a static and independent variable most of the time. Our unique approach is to parameterise time dimension in a coinage. We are constructing cryptographically powered time locks for averaging stablecoin supply and demand agnositc to the networ effects of money markets.
Hence Semiott Secure Stablecoin is Algorithmic Stablecoin providing users the advantages of Blockchain through privacy in transactions while at the time same protecting users from high volatility. SemiotNet works with a set of two supply side dynamics – expansion and contraction. If the price of the coin rises, automatically more coins are issue to increase the supply and reduce the price. The same goes for price reduction wherein supply is contracted digitally to increase the price back to equilibrium. The user always holds the same percentage of Stablecoins from the universe throughout such expansion and contraction phases, hence protecting the user from a significant amount of market risk.
SemiotNet has a twofold perspective towards the deployment of an Algorithmic Stablecoin. Stemming from the guarantee of privacy, it provides more amateur users to experiment with the world of cryptocurrencies before moving into more volatile currencies. Secondly it ensures the primary usage of a Stablecoin as a means to an end in the financial system by serving as a tender towards making payments through an official system. Stablecoins have grown over 493% over 2020 and the road ahead is only steeper. SemiotNet is a strong and balanced entry into this world of Stablecoins guaranteeing the fiat value of currency along with the privacy which is held most dearest in this digital age.
Semiott belongs to the next-generation, non-collateralized category of stablecoins. Semott aims to solve this by offering price stability and steady valuations. A stablecoin should ideally retain its purchasing power and have minimum inflation. On top of this stability, they also have the benefit that other decentralized Fiat-collateralized stablecoins are pegged to a particular currency and require a custodian to hold the fiat currency or commodity as a collateral in reserve to guarantee the redemption of the token. There are generally four categories of stable coins that are backed either by fiat (ex: yen), commodity (ex: gold), crypto (ex: bitcoin), and algorithms. An algorithmic stablecoin is a token that adjusts its supply deterministically in order to move the price of the token in the direction of a price target. Generally, an algorithmic stablecoin expands its supply when it is above the price target and contracts when it is below. The SemiottNet stablecoin relies on smart contracts that use algorithms to adjust the supply of the stablecoins based on VDF secured time weighted averages. This ensures that the algorithm will respond to changing market forces and ensures that the algorithm cannot be manipulated by bad actors.
The biggest challenge, with algorithmic stablecoins, is when demand-side forces are transposed into the token supply. In algorithmic stablecoins with an elastic supply demand there is a potential to “front run” adjustments by analyzing data in anticipation of upcoming changes in supply. This generates further directional momentum in what can eventually become a violent feedback loop. This would detract from the purpose of a stablecoin. Semiott stablecoin solves this issue with its device of money streaming and quadratic funding. In particular, what makes Semiott stablecoin unique is its application of the VDF secured time-lock.
A time lock is a type of smart contract primitive that restricts the spending of a coin until a specified future or block height. These “time-lock puzzles” are computational problems that cannot be solved without running a computer continuously for at least a certain amount of time. Time lock puzzles are flawed in that those with more computational resources might be able to solve the time-lock puzzle more quickly, by using large parallel computers. Verifiable delay functions solve this by taking a medium-large quantity of non-parallelizable work to compute.
Time-lock puzzles are similar to VDFs in that they involve computing an inherently sequential function. Time-lock puzzles however are not required to be universally verifiable and in all known constructions the verifier uses its secret state to prepare each puzzle and verify its solution. A VDF by contract is a function with universal parameters that it produces during a one-time setup. Anyone is able to evaluate the function and produce a proof that output is correct and verify the proof quickly. Semiott stablecoin employs zero-knowledge proofs of assurance. A zero-knowledge proof allows parties to prove that any other party has given a true statement, without conveying any additional information that may reveal themselves. Information is hidden on the ledger, while individuals are allowed to perform validation of that data. Since this output can be efficiently and publicly verified it serves as a public randomness beacon, ensuring anonymity.
In most cases we measure financial markets using geographic and demographic distributions of markets alone. Our unique approach is to parameterize time dimension into our stablecoin system. This multi-dimensional bonding curve allows the token to represent a portion of time parameters in certain proportions. Multiple dimensions of time - from seconds, minutes, to hours – are layered onto one another to smoothen possible variability of price found only within a certain parameter of time. This creates price control that is resilient.
Market supply of Semiott coins will be adjusted based on demand. Based on the exchange rate curve, Semiott price stabilization strategy has three states: stable, contracting and expanding. As the Semiott exchange rate curve shown below, the outer dashed line is the stability threshold. When the price curve is within the stability threshold range, the stabilization mechanism does not start, and the market price of Semiott now is entirely dependent on market supply and demand. Once the price curve falls outside the stability threshold range, the smart contract will be automatically initiated for expansion or contraction, driving the price back to the target price range (inner dashed line), and then the algorithm stops adjustment, continuing to monitor the price.
- SemiottCoin >> https://testnet.bscscan.com/tx/0x856a3b4feabd7c7bea810bd3d3fc5cb6ecde80916e0383607b4e869ec8fd5310
- SemiottStream >> https://testnet.bscscan.com/tx/0x473301b6e3da1102226d0a0acbe0aa18c36c4abaa6fe6f2d57489960450af848
- SemiottVerifier >> https://testnet.bscscan.com/tx/0x442bfd674a106aa793602239026a30fa01d2785221f2876a6643e04aacd33c7a
- Stablecoin with Time Locked Pause and Freeze Facilities
- Stablecoin Distribution over Money Streaming Protocol
- Stablecoin Supply Expansion and Contraction on Bonding Curves
- Stablecoin Streaming based on Multi Dimensional Time Locks
- Stablecoin Integration with Anonymous Zether Framework
- Multi Dimensional Time Locks using Verifiable Delay Functions
- Privacy Preserving Confidential Share and Bond Tokens
- Optimistic Rollup based Dispute and Fraud Control
- Fractional Price Calculation from Mixicles
- Stationary Time Average Functions using Verifible Delay Functions
- Zero Knowldge Rollups for Currency Bond and Share Token Transactions
- Zero Knowldge Exchange for Currency Bond and Share Token Exchange