Introducing “Multi-Pegs” the evolution of Algorithmic Stablecoin

Dear Community!

We know that there have been A LOT of questions regarding Multi-Pegs and speculations surrounding the idea as to why Multi-Pegs will be introduced.

We can see the Excitement, we also appreciate the Patience of the Community.

So what is Multi-Pegs?

Before looking into the Multi-Pegs concept, we would like to do go briefly through the core mechanics of the Seigniorage concept — expansion and contraction:

  • We all know that when BDO is higher than its peg BDO > $1), the protocol is in expansion and a new BDO will be minted, and increasing the supply causes inflation, theoretically reducing the price by increasing selling pressure.
  • When BDO is lower than its peg 1 BDO < $1, the system goes into a contraction phase and users can burn BDO for Bonds (bBDO) Working as the perfect opposite to expansion, as this theoretically increases the price through deflation by increasing demand.

Since the beginning, we have formed an idea about creating a Seigniorage protocol that is able to give out Multi-Rewards for Boardroom stakers, and this is where the state-of-the-art Multi-Pegs concept comes from.

We consider this concept ready to be brought forward and implemented, which will mainly help give BDO but also bBDO, sBDO, BFI, (sBFI) some newly added innovative use cases and increase the incentives to those loyal bDollar Community members.

Building further on the existing Seigniorage concept, we will create new Algorithmic assets never seen before on the Binance Smart Chain network and the first we are very excited to introduce is bpDOT — the next Algorithmic token running under bDollar Protocol, which will use sBDO and current Boardroom for its Seigniorage mechanism, effectively making boardroom give out “Multi-Rewards” (Up to 20+ rewards).

Below is the explanation of how bpDOT mechanisms work:

bpDOT trades below the DOT’s Current Market Price

When the bpDOT price is below DOT’s Current Market Price, token holders can purchase Coupons and bpDOT will be burnt to reduce the circulating supply when users redeem bpDOT tokens with a 1:1 ratio.

In case of redemption, an amount of bpDOT will be minted with premium with the Coupons that have been redeemed. Important to note is that Coupons have no expiry after purchase.

bpDOT trades above the DOT’s Current Market Price

When bpDOT price is DOT’s Current Market Price peg, the token supply will have to expand to push it back down to DOT’s Current Market Price and the contract will allow the redemption of the Coupons.

When the price of bpDOT continues trading above the DOT’s Current Market Price peg after Coupons redemption, the contract mints an appropriate amount of new bpDOT and this will be distributed to the Boardroom Stakers.

Peg bpDOT

The TWAP of bpDOT will be subsequently calculated from 2 liquidity pools: rate of bpDOT over BNB and rate of bpDOT over BDO.

To get the final rate of bpDOT over DOT, we use price feeds of DOT/USD and BNB/USD powered by ChainLink oracle services to ensure maximal robustness and efficiency. The rate of BDO/USD will be the latest TWAP of BDO (assumed that BUSD is always 1 dollar).

Expansion Phase happens when bpDOT TWAP above DOT’s Current Market Price in an Epoch with an example scenario:

bpDOT distribution

  • Distribution period: 187 days
  • Stake BDO (highest reward multiplier), sBDO, bBDO and sBFI (Scroll down for the Definition of sBFI)
  • Initial supply: 250,000 bpDOT
  • First week (7 days): 10,000 bpDOT daily
  • Day 8 to day 187 (6 months next): 1,000 bpDOT daily
  • Reward multipliers will be amended overtime
  • Block countdown: https://bscscan.com/block/countdown/6180000
  • Distribution of bpDOT during Expansion: 60% of newly minted bpDOT goes to DAO, while the rest 40% toward Boardroom Stakers
  • During Contraction (the Debt phase): 50% of minted bpDOT will be sent to the Treasury for bpDOT holders to participate in Coupons redemption; 30% for Boardroom stakers and 20% toward DAO Fund

Reward rate for Shares Pools (Multi-Pegs)

What is sBFI?

  • sBFI is the representation or receipt for your BFI and your corresponding rewards from being staked in bStake from bEarn.fi
  • Once you stake your BFI at https://bearn.fi/stake -> You will, in turn, receive sBFI in your wallet.
  • From there go to https://bdollar.fi/multi-pegs -> And stake your sBFI, and start earning bpDOT and auto compounding BFI at the same time! (This makes BFI become the first token that can be used to farm in double pools & earn double rewards with the same amount of tokens).
  • Note: sBFI is not a 1 to 1 representation of your tokens but a ratio of your stake inside the bStake.

Boardroom with bpDOT expansion reward: From epoch #368 (Fri 02 Apr 2021 06:00:00 AM UTC+0)

Conclusion

We strongly believe with the introduction of this new Multi-Pegs protocol, we will bring forth many benefits to our community, while this being only the beginning, we will continue to introduce in the coming weeks and months even more seigniorage tokens pegged to other popular major cryptocurrencies and also major fiat currencies used in the market.

But not only that we also have many more surprises in store for everybody, some of which are just around the corner, like bLending, bFolio, bLaunch, bPepe (NFT platform), the upcoming AMA with Binance Smart Chain.

And important to remember also, bDollar is getting support From Binance Chain for being selected as TOP 5 MVB projects. Giving the opportunity to participate in Community Vote for direct listing in the Innovation Zone.

Stay tuned for more updates!!!

Community channels:

Telegram: https://t.me/Bearn_Fi

Discord: https://discord.gg/j2TRcSHRe3

Medium: https://medium.com/@bearn.defi

Twitter: https://twitter.com/bDollar_Fi & https://twitter.com/BearnFi

GitHub: https://github.com/bearn-defi/bdollar-smartcontracts

A decentralized reserve currency protocol on #BSC https://www.bearndao.org/