Whitepaper-EN

The whitepaper for Supernova.cash

Introduction

SUPERNOVA.CASH is an essential part of the experimental algorithmic stablecoin multiverse built by HIGGS NETWORK. In the Supernova Universe, all participants will experience the origin, expansion and stability of the universe, as well as the birth and evolution of many algorithmic stablecoin stars.

In the past stablecoin protocols often exclusively used either a pure collateral model or a completely unsecured model (algorithmic stability). Pure collateral stablecoins either need to over-collateralize assets on the chain, or have custody risks, and the scale is limited by the amount of collateralized assets; but these designs can provide a fairly stable fixed exchange rate and have a certain degree of credibility. Completely unsecured (algorithmic) stablecoins make up for the shortcomings of collateral-backed stablecoins, do not require trust, are scalable, etc.; however, excessive exchange rate fluctuations limit their application scenarios.

The Supernova Universe will simultaneously use the two stablecoin design models and will be launched in a number of steps.

Phase 1: Origin

(The birth of SUPERNOVA.CASH sCASH: sCASH=2100)

SUPERNOVA.CASH employs sCASH/SHARE dual token model with the addition of price stabilization fund sFUND.

sCASH: an algorithmic stablecoin that is pegged to USDT (in the HECO ecosystem) 1:1

SHARE: a universal SHARE of the algorithmic stablecoin universe. SHARE receives revenues from different algorithmic stablecoin stars. For example, SHARE/sCASH LP token holders can get sCASH dividends when sCASH goes through an expansion.

sCASH mining

The initial number of sCASH stablecoins is 2100, which will be distributed through 10 lossless mining pools and sale for the sFUND pool.

HUSD

USDT

wHT

pNEO

wETH

HBTC

HDOT

HFIL

HLTC

BAG

Each pool have 100， and distributes in 5 days

supernova also supports ftokens

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Filda Token

fHUSD

fUSDT

fHT

fNEO

fETH

fHBTC

fHFIL

fHDOT

fHLTC

Filda （50）

TPT （50）

‌

sFUND sale

Users can use USDT to buy 20 sCASH per day for a total of five days, and all USDT raised will enter the sFUND account for future sCASH stabilization.

sCASH mining

The total number of SHAREs released by sCASH "star" is 10,000.

When users provide liquidity for sCASH/USDT and SHARE/USDT pools, they will get SHARE rewards. Reward rules as follows:

Of the total number, 7500 Shares will be rewarded to sCASH/USDT LPs at 62.5 per day, reduced by 1/4 every 30 days.

The remaining 2500 Shares will be rewarded to SHARE/USDT LPs at 20.83333 per day, reduced by 1/4 every 30 days.

Expansion

One epoch (era) will last 24 hours. When the Time-Weighted Average Price (TWAP) price of sCASH in an epoch is greater than 1.05, the system will issue extra sCASH in amount: supply*(MIN{TWAP-1),1}, and users who staked LPs tokens of sCASH/SHARE will share 95% of the additional sCASH issued during the expansion, and the remaining 5% will go to sFUND (exchanged to USDT through sCASH/USDT pair, same for repurchasing sCASH described in the next paragraph).

When the TWAP price of sCASH is lower than 0.95, the system will give priority to using the (1-TWAP) proportion of USDT in sFUND to repurchase sCASH through the sCASH/USDT pair, and allow sCASH to be exchanged for SHAREs. The amount available for exchange is 1% (100 SHAREs) of the initial release; the rules are the same as in the public sale via the stabilization fund; all sCASH raised will be placed into sFUND until the sCASH price returns to above 0.95.

Phase 2: Expansion

(Growth of SUPERNOVA.CASH sCASH: sCASH circulation = [2100, 210000000])

During the expansion of the Supernova Universe, many algorithmic stablecoin stars will be born and witness interaction between them, including:

sHT: An algorithmic stablecoin pegged to the value of Huobi Token

Birth condition: sCASH in circulation > 21,000

Initial amount: 2100 tokens

How to receive: no-loss mining (2000/4 days, sCASH/HNEO/HT/HETH/HBTC, 100 tokens/pool/day) and public sale via the stabilization fund (100 tokens, only buying with wHT supported)

SHAREs rewarded: 10000

2500 used to reward sHT/HT LPs, 20.83333 SHAREs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sHT/USDT LPs, 20.83333 SHAREs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sHT/sCASH LPs, 20.83333 SHAREs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward SHARE/USDT LPs, 20.83333 SHAREs distributed every day, reduced by 1/4 every 30 days.

Expansion

One epoch (era) will last 24 hours. When the TWAP price of sHT in the epoch is greater than 1.05, the system will issue extra sHT in amount: supply*(MIN{TWAP-1),1}, and users who staked LPs tokens of sHT/SHARE will share 95% of the additional sHT issued during the expansion. The remaining 5% will be transferred into sFUND (exchanged to HT via sHT/HT pair, same for repurchasing sHT described in the next paragraph).

When the TWAP price of sHT is less than 0.95, the system will give priority to using the (1-TWAP) proportion of HT in sFUND to repurchase sHT from sHT/HT pair, and allow sHT to be exchanged for SHAREs. The amount available for exchange is 1% (100 SHAREs) of the initial release; the rules are the same as in the public sale via the stabilization fund; the sHT raised will be placed in sFUND until the sHT price returns to 0.95.

sNEO: An algorithmic stablecoin pegged to the value of NEO

Birth condition: sCASH circulation > 210,000

Initial amount: 2100 tokens

How to receive: no-loss mining (2000/4 days, sCASH/sHT/HNEO/HETH/HBTC, 100 tokens/pool/day) and public sale via stabilization fund (100 tokens, only buying with HNEO supported)

SHAREs rewarded: 10000

2500 used to reward sNEO/HNEO LPs, 20.83333 LPs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sNEO/USDT LPs, 20.83333 LPs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sNEO/sCASH LPs, 20.83333 LPs will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward SHARE/HNEO LPs, 20.83333 LPs will be distributed every day, reduced by 1/4 every 30 days

Expansion

One epoch (era) will last 24 hours. When the average TWAP price of sNEO in the epoch is greater than 1.05, additional total supply*(MIN{TWAP-1), 1} of sNEO will be issued, and users who staked LPs tokens of sNEO/SHARE will share 95% of the additional sNEO issued during expansion. The remaining 5% will be transferred to sFUND (exchanged to HNEO via sNEO/HNEO, same for repurchasing sNEO described in the next paragraph).

When the TWAP price of sNEO is less than 0.95, the system will give priority to using the (1-TWAP) proportion of HNEO in sFUND to repurchase sNEO from sNEO/HNEO pair, and allow the exchange of sNEO for SHAREs. The amount available for exchange is 1% (100 SHAREs) of the initial release, the rules are the same as in the public sale via the stabilization fund, all sNEO raised are placed in sFUND until the sNEO price returns to above 0.95.

sETH: An algorithmic stablecoin pegged to the value of ETH

Birth condition: sCASH circulation > 2,100,000

Initial amount: 210 tokens

How to receive: no-loss mining (200 tokens/4 days, sCASH/sHT/HNEO/HETH/HBTC, 10 tokens/pool/day) and public sale via stabilization fund (10 tokens, only buying with wETH supported)

SHAREs rewarded: 10000

2500 used to reward sNEO/HNEO LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sNEO/USDT LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sNEO/sCASH LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward SHARE/HNEO LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

Expansion

One epoch (era) will last 24 hours. When the average TWAP price of sETH in the epoch is greater than 1.05, additional total supply*(MIN{TWAP-1), 1} of sETH will be issued, and users who staked LPs tokens of sETH/SHARE will share 95% of the additional sETH issued during expansion. The remaining 5% will be transferred to sFUND (exchanged to HETH via sETH/HETH pair, same for repurchasing sETH described in the next paragraph).

When the TWAP price of sETH is less than 0.95, the system will give priority to using the (1-TWAP) proportion of HETH in the sFUND to repurchase sETH from sNEO/HNEO, and allow the exchange of sNEO to SHARE. The amount available for exchange is 1% (100 SHAREs) of the initial release, the rules are the same as in the public sale via the stabilization fund, all sETH raised are placed in sFUND until the sETH price returns to above 0.95.

sBTC: Algorithmic stablecoin pegged to the value of BTC

Birth condition: sCASH circulation> 21,000,000

Initial amount: 21 tokens

How to receive: no-loss mining (20 tokens/4 days, sCASH/sHT/sNEO/sETH/HBTC, 1 token/pool/day) and public sale via stabilization fund (1 token, only buying with HBTC supported)

SHAREs rewarded: 10000

2500 used to reward sBTC/HBTC LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sBTC/USDT LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward sBTC/sCASH LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

2500 used to reward SHARE/HBTC LPs, 20.83333 will be distributed every day, reduced by 1/4 every 30 days

Expansion

One epoch (era) will last 24 hours. When the TWAP price of sBTC in the epoch is greater than 1.05, additional total supply*(MIN{TWAP-1), 1) of sBTC will be issued, users that staked sBTC/SHARE LP tokens can share 95% of the additional sBTC issued during expansion. The remaining 5% will enter sFUND (exchanged to HBTC through sBTC/HBTC pair, same for repurchasing sBTC described in the next paragraph).

When the TWAP price of sBTC is less than 0.95, the system will give priority to using the (1-TWAP) proportion of HBTC in sFUND to repurchase sBTC from sBTC/HBTC; and allow the exchange of sBTC to SHARE. The amount available for exchange is 1% (100 SHAREs) of the initial release, the rules are the same as with the public sale of the stabilization fund, and all the sBTC raised are placed in sFUND until sBTC price returns to above 0.95.

In addition, we welcome major global blockchain communities to breed more algorithmic stable currency stars by providing liquidity, such as sDOT, sFIL, sBCH, and more.

Ecosystem

SUPERNOVA.CASH and such HECO ecosystem projects as Filda, LendHub, Channels, and other decentralized lending platforms will cooperate to launch an algorithmic stablecoin lending zone to develop use cases for algorithmic stablecoins, such as mortgage lending, loans, credit loans, and more.

Phase 3: Stability

(The stability of SUPERNOVA.CASH sCASH: sCASH=[210000000, +∞])

When the circulation of sCASH is greater than 210 million, SUPERNOVA.CASH (Supernova Universe) officially enters the third phase. During this phase, users can use SHARE and other types of collateral to mint many algorithmic stablecoins to maintain the stability and balance of the Supernova.Universe.

Take sCASH as an example to illustrate the process in detail. sCASH can always be minted and redeemed from the system for $1. This allows arbitrageurs to balance the supply and demand of sCASH through arbitrage in the open market. If the market price of sCASH is higher than the target price of $1, then there are arbitrageurs who will put the value of $1 into the system to mint sCASH tokens and then sell it in the open market for more than $1. To mint new sCASH, the user must put a value of $1 into the system. The only difference is the ratio of the collateral to SHARE (two types of assets together constitute the value of $1). When sCASH is at 100% collateralization level the system mortgages 100% of the collateral value to sCASH. As the agreement enters the fractionalization stage, when minting part of the collateral value will come from SHARE. For example, with a 98% collateralization rate, every $1 of sCASH requires $0.98 of collateral and $0.02 of SHARE. In the 97% collateralization ratio case, each sCASH minted requires $0.97 of collateral and $0.03 of SHARE to be burnt, and so on.

If the market price of sCASH is less than $1, the arbitrageur will buy sCASH cheaply on the open market and redeem the collateral and SHARE at a value of $1 from the system. Users can redeem $1 worth of sCASH from the system at any time. The only difference is that the redeemer gets a different ratio of collateral to SHARE. When sCASH is in the 100% collateralization phase, at redemption the value returned to the user will be all made up of collateral. When entering the fractionalization stage, part of the value that leaves the system during the redemption process will be in SHARE (minted SHARE will be provided to the redeeming user). For example, with a collateralization ratio of 98%, for each sCASH you can redeem the collateral of $0.98 and the newly minted SHARE of $0.02. With a collateral ratio of 97%, for each sCASH you can redeem the collateral of $0.97 and the newly minted SHARE of $0.03.

DAO

Holders of SHARE can not only obtain profits from expansions by staking LP tokens, use SHARE and collateral assets to synthesize algorithmic stablecoins, but also vote with SHAREs to jointly exercise governance rights. We sincerely invite all DeFi ecosystem participants and users to participate in the innovative development and construction of the Supernova Universe.