April 24th, HBTC Exchange officially launched the compliant stable currency HUSD, and open 6 trading pairs simultaneously. Bluehelix Cloud opened HUSD related services to its 230+ exchange clients. On the day of launch, Elsa Qiu, HBTC VP of Business Development invited Tyler WU, HBTC Global General Manager and Lynn, COO of HUSD to discuss in HBTC Global Community.
Tyler Wu introduced the listing criteria of HBTC:
“On our second anniversary, we implemented a 100% Proof of Reserve showing our commitment to transparency and security of the platform’s assets to ensure the safety of our user’s assets on HBTC.
Most of the currencies listed on HBTC in the past are mainly mainstream ones. USDT is listed as a source for liquidation for its large quantity in circulation but it has also been criticized for its opacity which makes a risk to the business. We realize that providing more options for stablecoins is the right strategy.”
New Innovative Token Models of HBTC
Tyler noted that HBTC has been in operation for two years, and the team managed to maintain the market price of BHT above the issued price with an all-time upward trend bringing gains to BHT token holders. The Bluehelix Cloud SaaS solution served more than 230 clients around the world and had a zero downtime and zero asset theft record.
Now HBTC is accelerating the pace of development for C2C business and decided to implement the concept of blockchain to deliver the Exchange to the community and to allow token holders to take part in the business operation and to share in the growth of the business.
In order to perfect the token model of HBC (an upgraded version of BHT, native token of HBTC Chain), as well as engage everyone to contribute to and be a part of HBTC. The HBTC Team has implemented two new innovations in the exchange business and Tayler gave a detailed into of models:
- A Brand New 10x Repurchase (PE) Model
HBTC will use 100% of its business revenue in the brand new 10x PE repurchase scheme. HBTC will conduct a daily repurchase of HBC from the secondary market on it’s Exchange using the formula (10x PE=HBC price / annualized income of HBC * 10). This will create support for HBC and a solution to the drawbacks of buyback-and-burn which has no effect on increasing the price of token while the business is growing. This can effectively promote HBC on the secondary market and with the growth of the exchange business, the value of HBC will rise.
- Brand New HBTC Captain Incentive Model
“HBTC will use 50% of the HBC tokens obtained from the daily repurchase scheme to reward HBTC Captains for their contribution to the growth of the exchange. Any user who holds 1000 HBC can apply to become a HBTC Captain. The role of an “HBTC Captain” is that of value-sharing with platform co-builders of HBTC Exchange. HBTC Captains use their influential capabilities and expertise to help expand and maintain the HBTC community and to drive trading business and project listings for HBTC Exchange. HBTC Exchange will share its growth in revenue with our Captains through the brand new 10x Repurchase (PE) model.”
The fast-growing Stablecoin – HUSD
Lynn believes that Volatility is the main reason for people to hold a stablecoin.
“With low volatility and the programmable feature blockchain brings, stablecoin can serve well as a medium of exchange or a unit value in the cryptocurrency world.Currently, the most common types of stablecoin on the market are fiat-backed stablecoins, like HUSD which is backed by US dollar.”
Then Lynn believes USDT has its strengths and flaws. USDT reached wide-spread liquidity-mainly in Asia-earlier than every other USD-backed stablecoin but there are also problems behind.
“USDT’s USD pegging is not guaranteed by anyone except：1. The belief in Bitfinex and Tether, and 2. The high liquidity from the market and price spread can be mitigated by arbitrage traders. However, these beliefs are collapsing.”
In late 2018, Tether experienced crash amidst banking issues right after following the debut of a series of competing for stable coins. At the time, the spread of the USDT/USD trading pair reached -15%. When market participants start to realize the risk of relying on one single stablecoin, USDT is suffering from the risk of lack of transparency, auditability, and compliance.
Lynn pointed out the differences of HUSD:
“To ensure that each HUSD token is backed 1:1 by the U.S. dollar, all of the fiat assets HUSD received are held in a U.S. regulated trust company. The HUSD team does not and cannot touch the client’s money. And we also have an independent audit firm to provide monthly attestations to bring transparency and trust.”
According to Coin Metrics, HUSD’s market cap rose by 80.18% in March, similarly, USDC grew 55.4%，USDT grew 55.91%，PAX grew 24.74%. The top five ERC-20 stablecoins total supply increased by 57% to 5.5 billion within one month.
Lynn added that users can use HUSD on HBTC, Huobi Global, Ftx, Hotbit and Tokenlon. And applications like Alchemy Pay now supports users in regions like Singapore and Japan to make payments in shopping malls, and car rental firms with HUSD.
“We see the stablecoins have the ability to connect, empower, and affect the real economy. We are trying actively building to build our products and services so that enterprises and people individuals from all industries can easily use and access our services everywhere. ”
When talking about the Central Bank Digital Currency, Lynn said:
“We’ll see blockchain and programmable assets become more of the infrastructures for the new era, to increase transparency, efficiency, as well as the accessibility of financial and monetary services to the world.”
DeFi and programmable future
Lynn said she believes the hybrid decentralization may be the answer to many projects, in this way the project obtains effects of decentralization such as fault tolerance and transparency, while at the same time reserve benefits of centralized governance/operation such as efficiency and -some times, security.
“Like what we have seen in this week’s events: Maybe code is the law, but Blockchain still needs a legal system. Stablecoin is one of those projects, it is more like “hybrid decentralization” than “centralized”. Our users can trust both the blockchain HUSD operates on as well as the regulation mechanism guaranteeing its value.”
Tyler noted that the launch of HBTC Mainnet will deliver cross-chain asset custody interoperability between leading currencies like BTC and ETH, which will improve the ecological experience of the users, in decentralized mortgage lending and DEX applications.
“Decentralized Swap has the characteristics of an absolute decentralization without the need for KYC and security of assets. Taking BTC/ETH swap as an example, no party has access to the private keys of BTC and ETH during the entire process of the swap. The transaction on the swap can be reconfigured to invalid when the transaction is not completed within the given time frame. Code is Law, which can solve centralized financial transactions in many situations through a trustless environment. ”
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Last modified: May 2, 2020 3:41 PM UTC