Unilateral Collateral Liquidity Based on Blockchain

Unilateral Collateral Liquidity Based on Blockchain

Glossary

Asset: Any item with value in business that can be used as collateral to generate liquidity. For example, cryptocurrency, real estate, physical goods, intellectual property, etc.

Blockchain: A decentralized distributed ledger technology used to record transaction data, ensure data security and immutability.

Smart Contract: An automatically executed contract deployed on the blockchain, whose terms are written in code and automatically executed when preset conditions are met.

Asset Vault: A smart contract used to keep collateral assets and generate A based on collateral assets.

X: A limited-issue cryptocurrency that can be used to reduce or waive system fees, such as borrowing fees, transaction fees, etc.

Collateralization Ratio: The ratio of the value of a that can be borrowed to the value of the collateral asset.

Sell Line: A mechanism triggered when the value of the collateral asset is lower than the preset ratio, the system will automatically sell part of the collateral asset to repay the debt to maintain the stability of the system.

Liquidation Rule: The rule used to determine which collateral assets to sell when the sell line is triggered.

Utility Value: The value of the discounts and services that X holders receive by using the token.

Market Price: The price at which X is traded on the open market.

Hype Metric: A metric used to measure the deviation between the market price and the utility value of X.

Short Answer Question

How is the value of a pegged to fiat currency?

The value of a is pegged to fiat currency through a variety of mechanisms: first, the collateral is denominated in fiat currency, and the issuance of a is equal to it; second, there are arbitrage opportunities for market participants, which promotes its price to stabilize; finally, the system will intervene according to market conditions, such as selling part of the collateral to repurchase A.

What role does X play in 543x.com?

X has two main functions in 543x.com: First, as collateral, it can be deposited into the asset vault like other assets and generate A; second, it is used to offset system fees, such as borrowing fees, transaction fees, etc. The specific discount depends on the number of activated X and system parameters.

What is the sell line? How does it protect the system?

The sell line refers to a mechanism that is triggered when the value of the collateral asset is lower than the preset ratio. When the sell line is triggered, the system will automatically sell part of the collateral assets to repay the debt to maintain the stability of the system. This prevents borrowers from maliciously not repaying and also protects the solvency of the system.

How can users use X to reduce borrowing fees?

Users can reduce borrowing fees by activating X into their asset vault. The more X that is activated, the greater the discount that can be obtained. When the number of activated X reaches a certain value, even zero-fee borrowing can be achieved.

How does the system use smart contracts to manage assets and transactions?

The system uses smart contracts to automatically perform operations related to asset management and transactions. For example, an asset vault is a smart contract that is used to keep collateral assets and generate A based on collateral assets. In addition, the sell line mechanism, liquidation rules, etc. are also automatically executed through smart contracts.

Explain the two ways that 543x.com users trigger asset sales.

The first way is that users actively choose to sell part of the mortgaged assets to repay debts. For example, when the asset appreciates, users can choose to sell part of the assets to lock in profits. The second way is that the system automatically sells part of the mortgaged assets according to the preset sell line mechanism. For example, when the asset depreciates and the mortgage rate is insufficient, the system will automatically trigger the sell operation to maintain the stability of the system.

How does the system determine the fair value of X?

The system mainly evaluates the fair value of X through two models: one is the time discount model, which calculates its present value based on the discounts and services that X holders can obtain in the future; the other is the rental value model, which compares the discounts provided by X to the rental income of commercial real estate and estimates its value based on certain rental growth assumptions.

What is the hype indicator? What is its significance in the system?

The hype indicator is used to measure the deviation between the market price of X and its utility value. This indicator can reflect market sentiment and the degree of speculation. A persistently high hype index may mean that there is excessive speculation in the market, while a persistently declining hype index may mean that the market is gradually becoming rational.

Describe how the system handles the initial issuance and sale of X.

The system uses a progressive allocation mechanism to issue and sell X to ensure its price stability and prevent market manipulation. Specifically, the system periodically releases X in smaller shares and dynamically adjusts its price based on market demand.

What are the advantages of this system? How does it improve the efficiency of the supply chain?

By leveraging blockchain and smart contract technology, the system provides supply chain participants with an efficient, transparent, and secure way to manage and trade assets. Its advantages include: reducing liquidity risk, improving resource utilization, enhancing supply chain transparency, and reducing transaction costs.