Oscar Cash introduction — an innovative algorithmic stablecoin based on HECO
Oscar Cash is an open-source, permisionless, highly- scalable, decentralized, algorithmic protocol built on Heco.
Oscar Cash uses an innovative mechanism that relies entirely on the market and is executed transparently through algorithms on smart contracts. The algorithm is in charge of balancing stablecoin supply to fluctuating demand, ensuring that the token price remains relatively stable.
Three-Token System
OSC-Oscar Cash
Oscar Cash tokens are designed to be used as a medium of exchange. The built-in stability mechanism expands and contracts their supply, maintaining their peg to the USDT
OSB-Oscar Bond
Oscar Bonds are minted and redeemed to incentivize changes in the Oscar Cash supply. Bonds are always on sale to Oscar Cash holders, although purchases are expected to be made at a price below 1 Oscar Cash. At any given time, holders are able to exchange their bonds to Oscar Cash tokens in the Oscar Cash Treasury. Upon redemption, they are able to convert 1 Oscar Bond to 1 Oscar Cash, earning them a premium on their previous bond purchases.
Bonds in Oscar Cash do not have expiration dates. All holders are able to convert their bonds to Oscar Cash tokens, as long as the Treasury has a positive OSC balance.
OSS-Oscar Share
Oscar Shares loosely represent the value of the Oscar Cash network. Increased demand for Oscar Cash results in new Oscar Cash tokens to be minted and distributed to Oscar Share holders, provided that the Treasury is sufficiently full.
Holders of Oscar Share tokens can claim a pro-rata share of Oscar Cash tokens accumulated to the Boardroom contract.
Stabilization Mechanism
The Oscar Cash protocol is designed to guarantee Oscar Cash tokens to be exchanged at a value of a single US dollar, with the stabilizer (in-protocol stability mechanism) in charge of matching the supply of Oscar Cash to their demand.
Every 24 hours, the time-weighted average of the OSC-USDT exchange rate is read from the MDEX, which is then fed into the Oscar Cash protocol to be referenced by its stability mechanism.
The stabilization mechanism is triggered whenever the price of Oscar Cash is observed to be above / below (1+ε) USDT, where ε is a parameter that defines the range of price stability for the OSC token. On launch, ε is set to be 0.05.
Contractionary Policy
At any point in time, Oscar Bonds can be bought from the protocol in exchange for Oscar Cash. Purchase of Bonds are performed at an algorithmically set price. With a Oscar Cash oracle price of P USDT, bonds are sold off at a price of P OSC (effective price being P² USDT), promising bond holders a premium when redeemed. Purchased bonds can be converted to Oscar Cash, insofar as the preconditions are met and the Treasury is not empty.
Bonds can still be purchased even when Oscar Cash trades above 1 USDT (P > 1), however this nets the purchaser a loss when redeemed. For example, when 1 OSC = 1.1 USDT, a Bond is sold for 1.1 OSC. Since all Bonds can only be redeemed for 1 Cash, this yields the purchaser a net loss. Thus, bond purchases are only expected to occur when 1 OSC trades below 1 USDT. Although bond purchases at a OSC price above 1 USD is allowed in the contract, it is disabled in the Oscar Cash frontend to avoid user confusion.
Expansionary Policy
If the price of Oscar Cash is observed to be higher than (1+ε) USDT, the system mints total Supply *(oraclePrice-1) number of new Oscar Cash tokens. The issued Oscar Cash is either deposited to the Treasury or the Boardroom, depending on the Oscar Cash balance of the Treasury.
Risk reserve fund
For the longevity of the project, when the average price of OSC < $1, Oscar Cash will trigger the repurchase mechanism to buy back a certain amount of OSC using the USDT in the Risk reserve fund, and the repurchased OSC will be permanently destroyed. When the average price of OSC > $1, Risk reserve fund will sell a certain amount of OSC for capital reserve.
Token Allocation
Oscar Cash Token(OSC)
Pool V1: 5 days of mining. 2k per day per pool, 10k per pool, across 5 days, total 70k. The risk reserve fund will receive 3%, the developer fund will receive 2%, and Inviter will receive 1% reward, to be released simultaneously with the mining pool.
USDT: 10,000
HUSD: 10,000
HT: 10,000
HBTC: 10,000
MDX: 10,000
GOF: 10,000
BEE: 10,000
Oscar Share Token(OSS, Total Supply: 500001)
Pool V2: The risk reserve fund will receive 3%, the developer fund will receive 2%, and Inviter will receive 1% reward, to be released simultaneously with the mining pool.
OSC/USDT MDEX LP: 345,000 OSS distributed over 365 days. Every 30 days mining speed will be reduced by 25%
OSS/USDT MDEX LP: 125,000 OSS will be distributed over 365 days, equally
OSB: 30,000 OSS will be distributed over 365 days, equally
Schedule
Launch: February 26, 07:00 UTC
Pool1 Mining: Until March 3, 06:59 UTC
Pool 2 Mining: Ongoing for 365 days from launch
Pool 2 Mining-OSB mine OSS: March 3, 07:00 UTC
First expansion (if OSC>1.05): March 4, 07:00 UTC
Further Links:
Website: https://oscarcash.finance
Medium: https://oscarcash.medium.com
Telegram: https://t.me/OscarCash
GitHub: https://github.com/Oscar-Cash
