and, as always, in this simplicity is hidden a huge amount of hidden possibilities.Everyone knows the postulate - Money makes Money. The basis of my idea is precisely this plot of transformation of real financial assets into digital ones. The project fully implements the transfer of any investment in Fiat or cryptocurrency into a reliable asset of decentralized finance and ensures complete safety and protection from inflation invested inEthereum... In solving this problem, I took as an example the existing US financial system.
And so if we assume that Ethereum is a Dollar, and a smart contract isOffice of the Comptroller of the Currency of the United States (OCC), and tokens generated by a smart contract are U.S. Treasury Securities, a financial model of a new decentralized economic system based on cryptocurrency is obtained.I have implemented all this in this project. Unlike the existing Fiat, it completely lacks an external emission regulator and is managed by a smart contract program.
1. The goal of the project is to create conditions under which investments in cryptocurrency will be profitable, safe and protected from financial losses, which in turn will attract financial and banking businesses to the decentralized sector of the new economy.
2. Who will be the main stakeholders in this project? These are primarily banks, insurance companies, cryptocurrency exchanges, pension and other funds, everyone who has assets that need to be placed somewhere and multiply to save, who sees the future development of the digital economy.
3. Currently, there is not a single cryptocurrency storage and lending solution in the cryptocurrency world that does not depend on the speculative rate of BITCOIN, managed by its main owners, who are very profitable from its controlled volatility.
4. In the proposed project, there is a solution to preserve and lend cryptocurrencies against the security of an ETH deposit, without fear of market volatility, the project is universal for any platform where a smart contract can be used.
5. To implement the idea, a smart contract is used as a decentralized self-balanced self-regulated crypto BANK (depository), which does not have a single management and control center for the emission of generated tokens, serving to accumulate the preservation and transformation of ETH into the financial equivalent of Stablecoins, the working name ETH-WORLD.
6. The project provides an advantageous opportunity for ETH holders to become co-owners of a crypto bank and receive income for placing a deposit, as well as receive additional income for providing connection of those who wish to a smart contract (crypto bank).
7. Co-owners of a crypto bank are all ETH holders who have connected their wallet addresses to a smart contract and have become issuers of Stablecoins.
8. A smart contract (crypto bank), summing the owners' ETH into the total authorized capital, generates tokens that are Stablecoins, the financial equivalent of an ETH deposit. The price of tokens (shares) can under no circumstances be devalued, since it is not tied to Fiat, but is measured in the quantitative content of ETH and can only increase with an increase in the issue of Stablecoins. The larger the total deposit, the less tokens will be generated per unit of investment, the higher their value will be. The profitability from the increase in the price is proportionally distributed between the co-owners of the crypto bank, the owners of deposits, depending on the amount and storage time. Smart contract tokens are equivalent and can participate infinancial turnover to the place of ETH.
9. Stablecoins have a limited emission, depending on the volume of the total ETH deposit, they can be used for storage, settlements, they can be exchanged, sold, pledged, while remaining the owner of the ETH deposit, they are necessary to connect to the smart contract and unlock the ETH deposit.
11. Imagine a bank in which you place your financial assets in the form of an ETH deposit not to the general bank account, but to your cell, while the bank issues smart contract tokens (shares of a crypto bank), and you become a co-owner of it. Your ETH is stored in your cell in the bank and is accounted for in the general balance (authorized capital of a crypto bank).
12. The bank (smart contract), when placing an ETH deposit, generates Stablecoins according to a given program and blocks ETH at the addresses of the deposit holders connected to it.
13. ETH-WORLD tokens are Stablecoins, the financial equivalent of ETH, they serve as a reliable collateral for the provision of a loan, they are fully secured by the volume of the ETH deposit, and are necessary to unlock the ETH deposit and connect others who want to the smart contract to the crypto bank.
14. Anyone can freely open a deposit and become a co-owner of a crypto bank by connecting their wallet address Ethereum to smart contract (crypto bank)... ETH always remains blocked on your address in the smart contract and can be unblocked at any time. You can also transfer your asset (ETH) to any other holder of the bank cell (smart contract) and the Bank will issue you its Stablecoins guarantees equivalent to the value of the transferred assets as a deposit to another co-owner of the crypto bank. In this case, you do not have a deposit that burdens your ETH, and you have the right to do with it at your discretion, and the ETH received by another co-owner will be blocked on his account.
15. ETH that came to the account address in the smart contract is always blocked and can be released if Stablecoins are received from any other address to this address, which in turn will be automatically registered in the smart contract as the address of the next co-owner of the crypto bank. Stablecoins are canceled once blocking ETH in a smart contract.
16. With an increase in the total volume of the deposit (authorized capital), the crypto bank forms the stability and reliability of the entire financial system, it removes free ETH from circulation, which in turn will lead to a deficit, and therefore to an increase in its value, while ETH transforms into Stablecoins as a financial asset continues to participate in financial turnover.
17. The emission of Stablecoins directly depends on the volume of the ETH deposit, the larger the total value, the higher the cost of tokens, and hence the income of the deposit holders.
18. Initial emission of Stablecoins 1000 for one ETH. Each million tokens generated by a smart contract increases the ETH deposit by approximately ~ 10% compared to the previous million(see table).This means that for every next million token emission, more ETH is required. This increase in the complexity of the issue is analogous to the difficulty of mining BTC. To generate the first million Stablecoins tokens, you need to place 1000 ETH in a deposit, and to generate 45 million Stablecoins, 100,000 ETH will be required, and the total amount of the deposit will be slightly more than 1 million ETH, while less than 10 Stablecoins will be generated for 1 ETH, that is, the price placing a deposit increased by 100 times.
19. The Stablecoins price means the emission of tokens received from the smart contract for placing an ETH deposit at the moment, and it increases with every million of the emission of ETH-WORLD tokens.
20. The entry price to the ETH smart contract cannot grow indefinitely, since the emission of Stablecoins is limited by the emission (amount) of the ETH itself already produced.
21. An increase in the ETH deposit stored in the bank's depository (at the addresses of the owners) in the smart contract increases the value of tokens and at the same time forms a deficit in ETH turnover in the network and, accordingly, affects its value. The growth in the cost of ETH stimulates miners to mine ETH, and the additional emission does not affect the decrease in the price of ETH, as the demand for purchasing ETH will increase. With an increase in the volume of the ETH deposit, the growth in the price of Stablecoins will gradually slow down due to the fact that more and more ETH will be required to generate the next million tokens. In the future, the price increase will depend only on the increase in ETH emission due to mining, which is about 10 percent per year, which is very necessary for sustainable growth and development of the economy.
22. The growth of the ETH deposit will lead to an increase in its value and thereby make it attractive for investment, therefore, it will increase the inflow of financial assets into ETH, which will not only be reliably preserved, but also multiplied due to the positive dynamics of growth in the price of ETH-WORLD.
23. By replacing the turnover of ETH in the blockchain network, its financial equivalent Stablecoins becomes a reliable coin of exchange between counterparties, since its value cannot be devalued, but can only increase. It's reallyStablecoins produced by a real financial asset hosted in Ethereum...
24. It will be very profitable to buy ETH-WORLD coin on the secondary market, first of all, for Fiat, since it keeps investments with its steady growth, which gives more interest to increase the ETH deposit thereby contributing to an even greater growth of financial assets.
25. The project includes a limitation of transactions sent to a smart contract with a side-altar from 0.1 ETH to 1000 ETH, the number of transactions is not limited. This means that only those who have at least 0.1 can open a deposit.Ethereum, and this is only a few tens of thousands, I think in the future, this figure will be further reduced.
26. Limiting the maximum value of the transaction excludes one-time manipulation of the price jump of ETH-WORLD tokens.
27. The maximum value of the Stablecoins transaction sent to the contract to unlock ETH and register the next co-owner of the crypto bank from 0.01 tokens is not limited. Tokens unlock the ETH deposit in proportion to the current ETH-WORLD rate and are canceled (burned out).
28. To connect your wallet address to a smart contract, you must send at least 0.01 ETH-WORLD tokens to the address of anyone connected to the contract. You can buy contract tokens from any address already connected to the contract by sending it ETH, or buy them on the secondary market by exchanging them for any other crypto currency or Fiat. The project allows you not only to place your deposits while maintaining and increasing your assets, but also to earn money by helping those who wish to become co-owners of a crypto bank by receiving ETH and Stablecoins (ETH-WORLD tokens) for this.
29. There are two options for opening a deposit. First, you need to purchase ETH, then send at least 0.1 ETH to the address already connected to the contract, thereby giving ETH, and in return receive Stablecoins, then send back tokens at least 0.01 Stablecoins, as a result of which the address of your wallet will be (registered) connected to the smart contract, and you you will be able to send your deposit to it and connect others by providing your address.
30. The second method is much cheaper to immediately send at least 0.01 Stablecoins to the address already connected to the contract by buying it in the secondary market, exchanging it for any other crypto currency or Fiat, paying only a few cents for it, depending on demand, the seller dictates the price, and it will be higher than the smart rate of the contract due to the very limited emission of free tokens. Which option is preferable to you decide for yourself. In my opinion, both options will be in demand, although the first is more profitable.
31. ETH is credited and unlocked at addresses connected to a smart contract without an acceptance procedure that does not require the consent of the address owner. The amount of the total ETH deposit in the smart contract determines the price of Stablecoins and the number of minted non-combustible coins (gold shares) that are not associated with the ETH deposit. These fireproof coins (golden shares) are not minted additionally, but are formed due to the difference in the value of previously issued Stablecoins. The number of free tokens is limited, the minimum ratio is 10 percent of your deposit, subject to an increase in the issue by the next million and depends on the storage period and the size of the total deposit.
32. The number of non-combustible Stablecoins (gold shares) is individual for each holder of the deposit and depends on its size and on the time of its closing. A smart contract (bank - depository) allows you to accumulate all available free ETH in a deposit. The returned tokens to the smart contract are canceled, once they burn out blocking ETH.
33. The ETH-WORLD coin initially has a capitalization of ETH, since it is not issued additionally like all existing types like TEZER and others Stablecoins, which are allegedly provided by the "ghost of money" buried in an unknown place and whose action can be covered up at any time, since they are manually controlled and someone is personally responsible for their release.
34. The project is also fundamentally different from the existing financial system.Decentralized Finance (DeFi)which is based on a monetary system focused onStablecoinswhich has an administrative control based on the exchange rate of the dollar and which is exposed to the risks of losing financial assets in the event of high and sharp volatility of ETH. What's the point inStablecoinspegged to the dollar or to any Fiat currency if you can print as many as you like? It is necessary, on the contrary, that the emission of Fiat depends on the total real volume of the decentralized world economy, and not on the whim of the local authorities, but these are my fantasies.
35. The presented graph demonstrates the non-linear dynamics of the ETH deposit relative to the linear emission of ETH-WORLD and non-combustible Stablecoins (gold shares).
36. Stablecoinsreplacing ETH, it guarantees its quantitative content and participates in the turnover of settlements in its place. Stablecoins not encumbered with ETH deposit non-combustible Stablecoins are formed by the total capitalization of the entire deposit, the amount of collateral, which can only be increased by the quantitative content of the ETH deposit, the amount of non-combustible Stablecoins cannot exceed 10% of the maximum value of the total deposit.
37. Stablecoinsnot related to the deposit, this is the total income paid in the form of remuneration for the storage of all funds invested in the ETH deposit to all owners in equal shares "in the form of a return of part of the authorized capital", the value of which depends on the amount and time of storage. This is still a very significant difference from the existing financial system. Decentralized Finance (DeFi) and on its basis Stablecoins, where for their creation not only have to pay platform owners for maintenance, but also leave up to 50% in the deposit in the form of insurance.
38. There is no regulator in my project at all. The main advantage of the project is that the owners of ETH manage their financial assets, not independently forwarding them anywhere other than their addresses connected to the smart contract, or only for the necessary initial connection, and also if they only need ETH-WORLD tokens - Stablecoins.
39. ETH located in the depository cannot be stolen from the addresses of the owners connected to the smart contract, since it is blocked, which provides additional insurance for your funds.
40. There are no restrictions to open an ETH deposit. Anyone can connect to the smart contract. The smart contract (crypto bank) is jointly managed by all owners of the ETH deposit and by no one in particular and is limited only by the emission of ETH. No government or judicial authorities can prohibit placing their financial assets in the deposit of a smart contract.
41. Consider how, in conjunction with a bank or any financial structure, it is possible to preserve and increase your financial assets in crypto currency.
42. ETH holders who placed a deposit in a smart contract received Stablecoins, which are the financial equivalent of ETH. Tokens can be sold to those wishing to connect to a smart contract and receive income, or pledge them to a bank and receive the value of ETH in Fiat while remaining the owner of an ETH deposit.
43. Stablecoins are very attractive to the bank because they are secured and cannot be devalued, they have a constant growth, unlike ETH. The bank can issue an interest-free perpetual loan secured by the client's Stablecoins (Islamic version of lending), although there may be other conditions. The bank does not have access to the client's ETH deposit and in case of non-repayment of the loan, it can only sell Stablecoins, and ETH will remain in the deposit blocked at the address (account) assigned to the client. Such a scheme of insurance against losses in case of ETH volatility is very interesting and can attract a large number of ETH holders, which in turn will increase the total ETH deposit and, accordingly, the cost of Stablecoins, especially during the period of falling ETH value.
44. Example. When the price of ETH fallsA bank about lending to clients, let's say for the 45th million of the issue Stablecoins (see table).... The deposit received 1 million ETH, which is only 1% of the ETH issue. The bank received a pledge of 45 millionStablecoins, while its price increased 100 times from the initial issue. If we assume that the price of ETH has fallen 10 times, and the price of tokens has increased by 100, then obviously the bank has already won, and if the bank pro credits clients with up to 52 million token emission, the deposit will already be 2 million ETH, and the price of tokens will increase 200 times. The larger the drop in ETH, the more people who want to insure their financial assets in the deposit, and thus the price of ETH-WORLD tokens increases even more. ETH holders who have insured their deposit will begin to repay the loan to the bank as soon as it becomes profitable for them when the price of ETH rises.
45. The fall in ETH is not infinite, since at a very low price, all ETH can go out of circulation, which will lead to its inevitable growth. If you insured 1 ETH on the first million of the token issue, having received its value in Fiat from the bank by pledging 1000 tokens, and the fall in ETH stopped and started to grow with the 45th million of the issue, then until the price of ETH reaches a favorable rate, you will not wake up to repay the loan. When you return the borrowed funds, the bank will unblock your deposit and keep 990 tokens for itself. The price of the tokens of the collateral left by the bank will be 99 ETH, I will notice right away it will be impossible to repeat this. If you had not insured your deposit, you would have earned these tokens while remaining in the deposit, without pledging the tokens to the bank. It is more profitable for the bank that you do not repay the loan, since the price of tokens will grow, constantly exceeding the borrowed funds by much.
46. These examples show that the owners of the ETH deposit are protected from financial losses in any market volatility. The conditions for placing ETH in a smart contract reflect the advantage of ETH deposit holders over other cryptocurrency holders and are very attractive for purchasing ETH. In fact, when lending, the owner of ETH has a deposit and its value in Fiat at the same time, and the higher the market volatility, the more people who want to place their financial assets in deposit.
47. Consider how, in conjunction with a bank or any financial structure, it is possible to attract a huge number of people who want to become co-owners of a crypto bank, for this you need only one thousand Ethereum.
48. In order to interest as many people as possible to participate in the program, the Bank (investor) offers everyone assistance in opening an account in a crypto bank (smart contract) for only $ 10. To do this, you need to purchase tokens from an investor to open an account and connect to a crypto bank. The investor will send to these accounts a deposit of 0.1 ether worth $ 350 to which he does not have access. Such an offer to invest 1000Ethereumturn into 10,000 deposits. An investor for his investment of $ 3,500,000 can receive almost 1,000,000 tokens and $ 100,000 for the sale of 100 tokens. These 10,000 crypto bank co-owners will want access to theirEthereum which is blocked on their accounts and will also start earning by connecting those who wish, and will also start depositing into their accounts Ethereum access that only they have.
49. An investor, investing everyone who wants to, turns his Fiats (financial investments) into tokens (shares of a crypto bank). Investing their funds in the accounts of others gives them the opportunity to develop and insures themselves against devaluation. It is very beneficial for the investor that everyone earns and increases their own, and therefore the total authorized capital of the crypto bank, transforming the monetary financial system into a decentralized one.
50. Smart contract decentralized self-balanced self-regulated ECO SYSTEM manages the amount of free ETH in the blockchain network replacing it with Stablecoins. The ETH-WORLD coin, together with ETH, stabilizes the cryptocurrency market and regulates the unlimited emission of ETH. ETH technology is the building block of the crypto industry, and ETH-WORLD is its financial regulator and protection. This financial system is a symbiosis of two ETH-WORLD tokens andEthereumworking in pairs and mutually compensating each other. The volatility of ETH creates a positive prerequisite for placing it in the deposit of a smart contract. The larger the ETH deposit in the smart contract, the higher the value of the ETH-WORLD token, which means the value of the saved asset. In turn, a large amount of the deposit creates a deficit in ETH turnover in the network, which leads to an increase in its value, which means that it will be put into circulation again.
51. In a world where there are negative rates on deposits, there can be no successful development of the economy, so I am sure this platform will be in demand by banking businesses. The smart contract allows the owners of the ETH deposit, together with the financial sector (banks, funds, insurance companies, exchanges), to manage the entire crypto currency market. Stablecoins backed by ETH this could be (a new single world currency under the conditional namePhoenix, which The Economist wrote about in 1988, issue 306.) Stablecoins cannot be managed and it only obeys a simple economic law.
52. When creating this project, I did not initially set myself the task of repeating BITCOIN or something similar. I was looking for solutions to preserve financial assets in cryptocurrency. With any volatility in ETH, the ETH-WORLD-Stablecoins asset grows. The maximum amount of the deposit, I suppose, will produce the emission of smart contract tokens 80-85 million Stablecoins, which means there are only 8-8.5 million free tokens, while the volume of the smart contract deposit will be only 50-60% of the total amount of all ETH.
53. Free Stablecoins tokens not encumbered with an ETH deposit are an asset produced by capitalizing the entire deposit of a smart contract who has a controlling stake in these shares, he has control over the decentralized crypto market. Stablecoins, minted with the entire volume of ETH of the smart contract passed through the deposit, perhaps this is Phoenix...
54. To implement the project, it will be necessary to create a smart contract with the parameters described above, enabling ETH owners to implement unique conditions for lending cryptocurrency, and make money by placing financial assets in cryptocurrency without fear of losses. Whoever is the first to implement the conditions of the project will become the leader of the new economic system.
Moscow 20.11.2019 Victor Proshutinsky
Those who wish to evaluate my work ETH, please do not hesitate.