About Values
Values is Metaverse Reserve Protocol on Polygon Network dependent on the $VALUES token. Every $VALUES token is supported by a crate of resources (for example MAI, FRAX) in the Values depository, giving it a natural worth that it can’t fall beneath. Values Protocol gives a likelihood to back NFT tokens to the depository liquidity. Values present monetary and game-hypothetical elements into the market through marking and holding. Values is part of the way fork for OlympusDAO with own turn applied for NFT Bonding for metaverse space and in light of Polygon organization.
How does it work?
At a high level, Values consists of its protocol managed treasury, protocol owned liquidity (POL), bond mechanism, and staking rewards that are designed to control supply expansion.
Bond sales generate profit for the protocol, and the treasury uses the profit to mint $VALUES and distribute them to stakers. With liquidity bonds, the protocol is able to accumulate its own liquidity. Check out the entry below on the importance of POL.
Why do we need Values in the first place?
Dollar-pegged stablecoins have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether. Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy. The dollar is controlled by the US government and the Federal Reserve. This means a depreciation of dollar also means a depreciation of these stablecoins.
Values aims to solve this by creating a free-floating reserve currency, $VALUES, that is backed by a basket of assets. By focusing on supply growth rather than price appreciation, Values hopes that $VALUES can function as a currency that is able to hold its purchasing power regardless of market volatility.
Is VALUES a stable coin?
No, $VALUES is not a stable coin. Rather, $VALUES aspires to become an algorithmic reserve currency backed by other decentralized assets. Similar to the idea of the gold standard, $VALUES provides free floating value its users can always fall back on, simply because of the fractional treasury reserves $VALUES draws its intrinsic value from.
VALUES is backed, not pegged.
Each $VALUES is backed by 1 MAI, not pegged to it. Because the treasury backs every $VALUES when it trades below 1 MAI. This has the effect of pushing $VALUES price back up to 1 MAI. $VALUES could always trade above 1 MAI because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1.
You might say that the $VALUES floor price or intrinsic value is 1 MAI. We believe that the actual price will always be 1 MAI + premium, but in the end that is up to the market to decide.
What is the deal with (3,3) and (1,1)?
(3,3) is the idea that, if everyone cooperated in Values, it would generate the greatest gain for everyone (from a game theory standpoint). Currently, there are three actions a user can take:
- Staking (+2)
- Bonding (+1)
- Selling (-2)
Staking and bonding are considered beneficial to the protocol, while selling is considered detrimental. Staking and selling will also cause a price move, while bonding does not (we consider buying $VALUES from the market as a prerequisite of staking, thus causing a price move). If both actions are beneficial, the actor who moves price also gets half of the benefit (+1). If both actions are contradictory, the bad actor who moves price gets half of the benefit (+1), while the good actor who moves price gets half of the downside (-1). If both actions are detrimental, which implies both actors are selling, they both get half of the downside (-1).
Thus, given two actors, all scenarios of what they could do and the effect on the protocol are shown here:
If we both stake (3, 3), it is the best thing for both of us and the protocol (3 + 3 = 6).
If one of us stakes and the other one bonds, it is also great because staking takes $VALUES off the market and put it into the protocol, while bonding provides liquidity and DAI for the treasury (3 + 1 = 4).
When one of us sells, it diminishes effort of the other one who stakes or bonds (1 - 1 = 0).
When we both sell, it creates the worst outcome for both of us and the protocol (-3 - 3 = -6).
#polygon #crypto #cryptocurrency #valuesfinance
Learn More
- Website: https://values.finance/
- Docs: https://docs.values.finance/
- Twitter: https://twitter.com/ValuesDAO
- Discord: https://discord.gg/xdNKGffeY2
- Reddit: https://discord.gg/xdNKGffeY2
- Telegram : https://t.me/valuesDAO
- Ann : https://t.me/valuesDAO_announcements
Username: Ozie94
Profile : https://bitcointalk.org/index.php?action=profile;u=2103066
Polygon address: 0xEfd7255D5b89Ceffa7d0E297b556286C143e779B