The Enumivo Liquidity Network's first stablecoin contract has just been deployed. This will be the first of the building blocks needed in expanding the network of market makers.
A token to represent the Enumivo Liquidity Network has been deployed to the account eln.coin. You can swap your LTS to ELN and back to LTS buy sending your LTS or ELN to lts.eln.coin. 1 ELN will always be equal to 1 LTS. The ELN token will become the security token that will make sure the stablecoins that are created is backed up by something.
The USD Stablecoin is a regular token deployed on the account named stable.coin. Together with a market maker contract that will act like a bank and an exchange deployed on the account named eln.usd.coin, everyone can now trade the USD. There are very specific rules on how it works:
1. Only the market maker eln.usd.coin can create and destroy the USD.
2. At the start, the market maker does not hold any tokens.
3. The market maker will buy and sell USD and ELN. The USD price of the ELN will start out at zero ELN/USD and will abruptly increase and as more USD is created, the market maker will slow down the price increase. The formula of the price is p = 100,000 ( sqrt (m)) where p is the price of ELN and m is the amount of USD in circulation.
4. You send ELN to eln.usd.coin and the market maker will create USD and send it to you. The USD price of ELN will then increase based on the formula above. You send USD to eln.usd.coin and the market maker will destroy the USD and give you ELN based on the formula above. The USD price of ELN will then decrease.
5. The USD, being issued by a smartcontract, is purely decentralized and there is no central authority obligated to honor it. Although it could open up gateways to make the USD tradable to the outside world like bitUSD, USDT, DAI, USDC, and fiat USD. I can also act as a gateway or escrow agent in case 2 parties want to trade Enumivo USD vs Other USD.
Given the behavior of the USD market maker, the price of ELN at this point is ultra cheap. I will be selling some ELN (despite getting very little USD) to get everything started. The USD i get will be used to set up the initial liquidity to other markets like ENU/USD and also start other crypto stablecoins like EOS, ETH, BTC and other fiat stablecoins like PHP, CNY, NGN. When other markets are created and all tokens will become tradable against each other, all the prices are expected to converge at the right ratios against each other, giving useful feedback and equalize the ELN/USD market. With all these, the whole Enumivo Liquidity Network will become a decentralized market driven price oracle. We will now have the prices of the outside world on-chain.
To get the USD supply in circulation using enucli:
enucli -u https://api.enumivo.org get currency stats stable.coin USD
"supply": "0.0001 USD",
"max_supply": "1000000000.0000 USD",
To get the ELN held by the market maker to back up all USD:
enucli -u https://api.enumivo.org get currency balance eln.coin eln.usd.coin
The Road Ahead
The Enumivo USD is the first one among the stablecoins that will exist and the ELN/USD is the first automated exchange. More will be added as time goes by. Although right now the trading price of ELN/USD is unrealistic, it will correct itself as more exchanges are added. Also part of the plan is to also have an improved price feed which is informative and easy to use.