The day has finally come.
We are very excited to announce the launch of our core product, CBD CASH.
CBD CASH is the world’s first protocol to combine real and algorithmic staple coins using CBD.
What is an Algorithmic Stablecoin?
Algorithmic Stablecoins are coins that aim to be stable, backed by game theory.
Some aim to peg to one dollar, others to one ETH, others to one BNB, and so on.
CBD CASH differs from the pioneering algorithmic stablecoins, such as Basis and bDollar, in that 1 cCBD pegs to $20.
However, algorithmic stablecoins are not a panacea; unlike BUSD and USDT, they are not backed by assets, which poses a problem.
As those of you who have already participated in bDollar and the like know, if Dollar continues to be minted, mint velocity and selling pressure will eventually come into conflict at some point.
From there, if bonds are not bought and excessive selling pressure continues, or if funds are withdrawn, the stablecoin will not be able to maintain its price and will drop significantly, becoming unsustainable as a stable.
cCBD Overcomes the Weaknesses of Algorithmic Stablecoins
The cCBD issued by CBD CASH has realized a system that can be called a “hybrid stablecoin,” so to speak, with the hope of overcoming this weakness.
Of the cCBD distributed by Boardroom, 25% will be kept by the Real stable fund and 15% will be kept by the Algo stable fund.
As long as the cCBD remains above $20, the fund will continue to grow.
If the cCBD falls below $20, the Fund will make incremental purchases of cCBD and bCBD.
If the price of cCBD does not return to $20 (pegged to real CBD) even with Fund buybacks, and falls below $16, then each cCBD can be exchanged for 1gram CBD.
That is, 1 cCBD is guaranteed to be exchanged for 1gram of CBD (the exchange system is scheduled to be released in May 2021 or later).
The cCBD used in the exchange will be burned and will disappear from the market.
Through these mechanisms, CBD CASH will be able to ride the boom of the green rush and bring sustainable benefits to everyone.
For more information, please see the document.
https://cbd-cash.com/doc/
