A majority of the projects in the cryptocurrency market have introduced their native crypto tokens whose price fluctuates with the forces of demand and supply. Often it is found that these crypto tokens are volatile in nature proving as a deterrent for retail investors.
Soft Bitcoin (sBTC) is one such cryptocurrency project, where the value of the cryptocurrency can trade within a targeted price range. sBTC is basically an ERC20 token, the value of which is soft pegged to 0.0001 BTC or 100,000 Satoshi.
Since it is ERC20 based, the sBTC utilizes Ethereum blockchain’s built-in smart contract token expansion and contraction algorithm and variable staking policies.
The sBTC Foundation works to ensure that the price of one sBTC will be mathematically guaranteed to be worth 0.0001 BTC in the short and medium term, regardless of circumstances. The Soft Bitcoin protocol maintains this equilibrium by expanding and contracting the supply relative to the target price.
If the time-weighted trading price of sBTC is below the target price, the supply contracts. Conversely, if the price is above the target price, the supply expands. This algorithm of the expansion and contraction of the supply makes sure that the price of sBTC will always remain close to 0.0001 BTC.
Note that the design of smart contracts for the sBTC is such that it will automatically execute the increase and decrease of supply without any need for transfer between peers or the need for a bank. This supply adjustment operation happens on a daily basis which is popularly called rebase.
The execution of the rebase operation happens proportionately across the wallet balances. The sBTC is the number one rebase coin wherein the developers don’t lock the coins but instead burn the liquidity.
The sBTC Foundation – The Governing Body of sBTC
There has been a rapid growth of Decentralized Finance (DeFi) applications over the last few months. The DeFi market is currently valued at over $15 billion and is expected to grow in the future.
The DeFi industry is currently facing the problems of stability as the ever persisting issues of liquidations and solvency of the DeFi contracts. The sBTC Foundation works a bit differently compared to other DeFi counterparts.
Soft Bitcoin (sBTC) replicates the success of the Renminbi’s exchange rate stability. In a way, the sBTC Foundation serves as the central bank for Soft Bitcoin. It aims at building its strong balance sheet that would ensure low volatility for sBTC.
Thus, the sBTC Foundation works towards a larger goal of making the sBTC token a safe haven having long-term growth potential and sustainability instead of the other pump and dump schemes.
Besides, the sBTC foundation aims to provide absolute transparency in its functioning. It will actively publish the foundation’s wallet addresses on sbtc.fi. Thus, all the soft Bitcoin stakeholders can monitor every action taken by the Foundation and ensure that it is working in the best interest of the project.
About Soft Bitcoin, Dex Listing, Token Distribution and Staking
As said the Soft Bitcoin (sBTC) tokens are basically ERC20 tokens based on the Ethereum blockchain network. The Soft Bitcoin Protocol is completely permission less and since it uses the smart contracts on the Ethereum blockchain network, it is open-sourced with some limited admin control.
The Soft Bitcoin is tradable on Uniswap.exchage with the sBTC/ETH pair with initial pricing equaling to 1 sBTC = 0.0001 BTC. The trading pairs on the Uniswap exchange will be the main contributors to the oracle’s pricing.
The sBTC’s initial supply is similar to that of Bitcoin i.e. 21 million but there’s no limit for the maximum supply. 70% of the initial supply tokens will be held by the Project Team & Consultants while 50% will be held by the sBTC foundation with a 24-month lock-up period.
Staking is also an additional rewards mechanism in the sBTC Ecosystem. The sBTC holders can earn a predetermined fixed as well as variable staking reward by depositing the sBTC derivatives in the staking smart contracts. Rewards will be distributed in the form of sBTC, ETH, and other partnership tokens. The staking mechanism encourages sBTC holders to hold their tokens which ensures greater price stability.
Project Discord channel GO HERE
Project Telegram channel GO HERE
Related
cryptoshib.com is author of this content, TheBitcoinNews.com is is not responsible for the content of external sites.
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
