What is PegsUSD (PUSD) | What is PegsUSD token

Pegs Cash Introduction

With the continues growth of the cryptocurrency market and the increase of overall market value, the demand for stablecoins is growing drastically. Compared with a high-volatility cryptocurrency like Bitcoin, stablecoins are more applicable in cross-border exchange scenarios.

USDT is already ranked third place in terms of the market value, while USDC, DAI, and BUSD are within the top 50. Different from traditional asset-collateralized stablecoins, a new kind of stablecoins-algorithmic stablecoins are undergoing further exploration, such as AMPL, ESD, BAC and FRAX.

We are obsessed with the ingenious design of stablecoins, among which FRAX is a protocol we admire and participated in its launch early on. However, we believe that the launch of FRAX is a huge violation of the spirit of cryptocurrency. Algorithmic stablecoins are extremely reliant on community consensus, but FXS’s token distribution plan caused panic in the community. Today we’d like to introduce Pegs Cash, a fair launch and a better design of Algorithmic stablecoins backed by a real asset.

Pegs Cash can peg the currency value of the real market, and firmly peg the real value in the volatile cryptocurrency market.

Pegs Cash Operation Mode

Pegs Cash has two tokens, PEGS and PUSD.

Pegs Shares (PEGS) is the governance token which accrues fees, seigniorage revenue, and excess collateral value.

PUSD is a stablecoin targeting a tight band around $1/coin with parts of its supply backed by collateral and parts of the supply algorithmic. The ratio of collateralized and algorithmic depends on the market’s pricing of the PUSD stablecoin. If PUSD is trading at above $1, the protocol decreases the collateral ratio. If PUSD is trading at under $1, the protocol increases the collateral ratio. Community governed and emphasizing a highly autonomous, algorithmic approach with no active management.

Swap-based Monetary Policy — Pegs Cash uses principles from automated market makers like Uniswap to create swap-based price discovery and real-time stabilization incentives through arbitrage.

Token Distribution

Fair Launch — No fundraising. The total amount of PEGS (shares) is 30,000,000, 80% (24,000,000) are produced through mining, and the output of the first year of mining is 12,000,000 and then halved every year thereafter. Pegs Cash only supports two trading pairs for mining, PUSD (stablecoin)/USDC, PEGS (shares)/PUSD, each accounting for 50%. 20% (6,000,000) of PEGS belong to the team and will be released in 12 months gradually after half a year of the Pegs Cash launch.

Economic Mechanism

Economic mechanism — Adjust the seigniorage tax and redemption tax to 0.3%. 30% of the seigniorage tax and redemption tax will be used as the fund reserve of Buyback, and 70% will flow into the dividend pool in PUSD. Staking PEGS to the dividend pool can be used for dividends, you will get the dividend continuously after the function launched.

Mining Tax — Pegs Cash team does not have fundraising, and the team will charge a 5% mining tax on the mining output of Pegs Cash, used as team development and marketing fee in due time.

Pegs Cash v2 — Pegs Cash supports the generation of multiple stable coins, and will initially support PUSD. Pegs Cash will not only become a stable currency issuance protocol for USD but also supports a series of stable currency like Euros, CNY etc. Pegs Cash v2 will become the central bank of stablecoin algorithms on the chain in the future.

Pegs Cash will be officially launched at 0:00 (UTC+0) on January 10, 2021.