Over the last year, we have seen many countries, led by the United States, implementing interest rate hikes and tapering measures to control inflation. Especially since the outbreak of Covid 19, central banks around the world have been constantly on guard, and inflation has reached nearly historic highs. Inflation has been a ubiquitous phenomenon for a long history.

With inflation continuing, people’s purchasing power of money gradually weakens, and the prices of goods and services continue to rise. Inflation leads to an increase in the cost of living for consumers, a decrease in the value of savings, and an increase in uncertainty in investment decisions.

As we all know, the original goal of Bitcoin was to create a decentralized, open-source currency that would be resistant to censorship, inflation, and government interference. As Bitcoin thrives, numerous cryptocurrencies come out and people need a less volatile store of value, that’s why stablecoins are in strong demand in this market. However, despite being a more convenient payment solution in some cases, cryptocurrencies and stablecoins do not address the most pressing issue faced by users of fiat currency —— inflation.

Obviously, we must do something now.

Stablecoins are an important component of the crypto world. On the one hand, stablecoins can serve as a measure of value, and on the other hand, they can be used to hedge against price fluctuations in volatile crypto assets. As the overall value of the crypto world continues to grow, there is still great potential for the expansion of stablecoins. Stablecoins that are robust, versatile, and transparent have the opportunity to capture this vast market.

After the outbreak of the pandemic, driven by the ultra-loose monetary policy, the US inflation rate reached a 40-year high at the end of 2021, and prices continued to rise, leading to a continuous decline in the purchasing power of the US dollar. This trend has been in existence not only during the pandemic but also for a long time. Recently, a stable currency bill H.R.2435 pointed out that since 2000, the purchasing power of the Federal Reserve Note has dropped by more than 40%, and since the passage of the Federal Reserve Act in 1913, its purchasing power has declined by 97%.

As the US dollar stablecoins are anchored to the US dollar at a 1:1 ratio, the same problem exists in the digital form of the US dollar, leading to the distorted measurement of the value of digital assets using stablecoins - the US dollar value of digital assets may rise, but the purchasing power does not increase synchronously. Based on this, we propose Floatcoin, an anti-inflation protocol, which will provide better value measurement and value preservation functions than fiat-anchored stablecoins.

The initial price of $Float is 1 US dollar, and the anchor price is adjusted daily based on the inflation rate provided by Truflation. For example, if Truflation's US inflation rate is 3.96% and has decreased by -0.01% compared to the previous day, then the Float anchor price will be adjusted to 1*(1-0.01%)=0.9999. The advantage of daily adjustments is that price changes are smooth. In the long run, $Float holders can ensure the purchasing power of their assets in the real world, and the Float price of crypto assets can also accurately reflect their value changes.

Floatcoin will be issued and minted based on protocol liquidity. Initially, it will be over-collateralized by LP tokens from the crvUSD/DAI/USDC/USDT/FRAX 5-coin trading pairs. Currently, major native stablecoins rely too much on a single stablecoin, USDC, and protocol-native stablecoins are the future trend. It integrates issuance and trading into one, further unleashing the potential of LP tokens. The 5LP token, as the most important collateral, will assist the Floatcoin protocol in achieving a three-in-one design of DEX lending and stablecoin. In the future, by including more interest-bearing assets, the Floatcoin ecosystem will be further enriched.

In terms of choosing a DEX protocol and underlying platform, after two years of in-depth research, we have found that Curve's governance is the most community-driven and its exchange model can accumulate significant value within the community. As for the underlying platform, we have chosen Rollup network Base with the OP direction because it possesses the two most important features we value: high speed and transaction security.

On the first day of launch, our protocol will be fully open-source and ensure complete decentralization as well as minimal governance. We believe transparency is the greatest fairness to our holders, and decentralization is the only path to transparency.

Floatcoin is an anti-inflation protocol built on Base Network. Floatcoin aims to protect users’ purchase power as well as provide better value measurement and value preservation functions than fiat-anchored stablecoins. With Floatcoin, users are able to hedge against inflation and take advantage of arbitrage opportunities.

Twitter | Discord

Over the last year, we have seen many countries, led by the United States, implementing interest rate hikes and tapering measures to control inflation. Especially since the outbreak of Covid 19, central banks around the world have been constantly on guard, and inflation has reached nearly historic highs. Inflation has been a ubiquitous phenomenon for a long history.

With inflation continuing, people’s purchasing power of money gradually weakens, and the prices of goods and services continue to rise. Inflation leads to an increase in the cost of living for consumers, a decrease in the value of savings, and an increase in uncertainty in investment decisions.

As we all know, the original goal of Bitcoin was to create a decentralized, open-source currency that would be resistant to censorship, inflation, and government interference. As Bitcoin thrives, numerous cryptocurrencies come out and people need a less volatile store of value, that’s why stablecoins are in strong demand in this market. However, despite being a more convenient payment solution in some cases, cryptocurrencies and stablecoins do not address the most pressing issue faced by users of fiat currency —— inflation.

Obviously, we must do something now.

Stablecoins are an important component of the crypto world. On the one hand, stablecoins can serve as a measure of value, and on the other hand, they can be used to hedge against price fluctuations in volatile crypto assets. As the overall value of the crypto world continues to grow, there is still great potential for the expansion of stablecoins. Stablecoins that are robust, versatile, and transparent have the opportunity to capture this vast market.

After the outbreak of the pandemic, driven by the ultra-loose monetary policy, the US inflation rate reached a 40-year high at the end of 2021, and prices continued to rise, leading to a continuous decline in the purchasing power of the US dollar. This trend has been in existence not only during the pandemic but also for a long time. Recently, a stable currency bill H.R.2435 pointed out that since 2000, the purchasing power of the Federal Reserve Note has dropped by more than 40%, and since the passage of the Federal Reserve Act in 1913, its purchasing power has declined by 97%.

As the US dollar stablecoins are anchored to the US dollar at a 1:1 ratio, the same problem exists in the digital form of the US dollar, leading to the distorted measurement of the value of digital assets using stablecoins - the US dollar value of digital assets may rise, but the purchasing power does not increase synchronously. Based on this, we propose Floatcoin, an anti-inflation protocol, which will provide better value measurement and value preservation functions than fiat-anchored stablecoins.

The initial price of $Float is 1 US dollar, and the anchor price is adjusted daily based on the inflation rate provided by Truflation. For example, if Truflation's US inflation rate is 3.96% and has decreased by -0.01% compared to the previous day, then the Float anchor price will be adjusted to 1*(1-0.01%)=0.9999. The advantage of daily adjustments is that price changes are smooth. In the long run, $Float holders can ensure the purchasing power of their assets in the real world, and the Float price of crypto assets can also accurately reflect their value changes.

Floatcoin will be issued and minted based on protocol liquidity. Initially, it will be over-collateralized by LP tokens from the crvUSD/DAI/USDC/USDT/FRAX 5-coin trading pairs. Currently, major native stablecoins rely too much on a single stablecoin, USDC, and protocol-native stablecoins are the future trend. It integrates issuance and trading into one, further unleashing the potential of LP tokens. The 5LP token, as the most important collateral, will assist the Floatcoin protocol in achieving a three-in-one design of DEX lending and stablecoin. In the future, by including more interest-bearing assets, the Floatcoin ecosystem will be further enriched.

In terms of choosing a DEX protocol and underlying platform, after two years of in-depth research, we have found that Curve's governance is the most community-driven and its exchange model can accumulate significant value within the community. As for the underlying platform, we have chosen Rollup network Base with the OP direction because it possesses the two most important features we value: high speed and transaction security.

On the first day of launch, our protocol will be fully open-source and ensure complete decentralization as well as minimal governance. We believe transparency is the greatest fairness to our holders, and decentralization is the only path to transparency.

Floatcoin is an anti-inflation protocol built on Base Network. Floatcoin aims to protect users’ purchase power as well as provide better value measurement and value preservation functions than fiat-anchored stablecoins. With Floatcoin, users are able to hedge against inflation and take advantage of arbitrage opportunities.

Twitter | Discord