Stablecoin demand has exploded recently with even questionable launches like FEI bringing in over $1B USD in protocol locked value. There is also an emerging demand for stablecoins that are not pegged to a fiat currency. The Float protocol is an example of a stablecoin that is aiming to be a “non-fiat pegged” stablecoin. Float has accumulated over $30M USD in total value locked through the release of their governance token before even launching their main token. Ultimately, we believe that a currency that is more stable than the dollar can be created in the crypto economy. In addition, we think demand for a crypto native stable coin will grow as the ecosystem develops and governments grapple with pegged stablecoin legislation.
Enter Icewater.money. The Icewater team is developing a stablecoin (H2O) that uses internal market forces to define stability. Specifically, stability is defined by a market prediction of the future value based on the price of an interest bearing asset called “ice”. H20 maintains stability by keeping the price of the ice stable (see this article for more details). The result is a currency that avoids the extreme volatility of a fixed supply without being tied to any fiat currency.
We built a prototype of H2O on an Ethereum testnet, but we think that Terra Luna would be a great home for the project due to the success of the platform in using crypto currencies in real world applications. We are looking for community support and involvement to migrate the H2O project to the Terra Luna blockchain.
Benefits to Lunatics
H2O will be independent from any one government. Its independence will make it well suited for a global currency.
Long-term stability will enable long-term contracts like corporate bonds, insurance, and employment agreements in the crypto ecosystem to be more effective than fiat contracts.
By leading the charge in crypto native stablecoins, the Terra Luna platform will be well positioned to gain additional ground in the race to become the gold standard for global finance.
The migration of the project would include:
- Rebuilding the smart contracts in CosmWasm
- Building a governance model
- Connecting the web app using Terra.js library.
- Getting an official audit of the code.
H2O is a single token protocol that includes three “phases”: ice, water, and steam. “Ice” refers to a bond-like phase that pays out regular amounts of water forever. “Water” refers to the “liquid” phase that has a stable value and can be freely traded between addresses. “Steam” refers to a volatile phase that derives value from speculation about future growth.
Short-term stabilization is achieved by adjusting the supply using water/steam transactions. Long-term stability is achieved by observing the water/ice market and adjusting the short-term target accordingly.
- 3 Months of development to migrate smart contracts, build a governance model, and connect the webapp
- 2 Months of testing.
- @RedBeard: Inventor
- @LizardBrain: Evangelist
- @bigba_daboom: Technical Artist
- @T. Ruxpin: Designer
- @ctown4vida: Developer
- @NibblerExpress - Engineer
- @theThrill - Advisor
- $60K UST - 2 Rust Developers for 5 months at $6K per month
- $20K UST - Audit and Hosting
We are also planning on participating in the DeFi Connected Online Hackathon. Come join our team if you are interested in participating. https://eventornado.com/submission/icewater