goStables - Decentralized Stablecoins for the Caribbean

[wescosmic]

Hey all now that you’ve seen our submission above, here are some key points about us:

• goStables Protocol allows you to mint, trade and earn from gStables which are a collection of USDD backed, Caribbean stablecoins pegged to real world exchange rates.

• goStables makes it possible to store/spend localised stablecoins securely on-chain from your own crypto wallet. You can swap to USDD anytime to access the global blockchain ecosystem.

• goStables enables others to build localized products and services that solve the needs of people.

• goStables currently supports 11 gStables on Nile testnet that represent the currencies used in the Caribbean region.

• Governance occurs on a per gStable level allowing for better decentralization. Governance decides on the parameters to allow whitelisted minter access of approved smart contracts to gStable token contract.

• Governance can facilitate tradgov, degov and public collaboration to ensure a safe and fair balance of regulatory compliance and open innovation access when using the protocol. Nile Testnet can be used as a public sandbox for these new innovations.

• Tron’s architecture allows us to subsidize/allocate energy to protocol users, giving ourselves cheaper/free on-chain transactions in the future. This unlocks as protocol resources and usage grows. Let’s collaborate and #buidl together!

[wescosmic]

What kinds of localized products/services can be built within the Caribbean supporting gStables?

[wescosmic]

One of the ways to achieve localised adoption is to have an easy to use web3 payment gateway. There are few options currently supporting Tron so we’re still exploring options as it would make sense to build on something already existing rather than building one ourselves from scratch.

We’ve been looking at DePay.com in particular and would really like to use their product to accelerate use case building for gStables. They provide a an easy web3 payment solution but they don’t yet support Tron. I’ve already messaged them on Discord asking to add support for Tron Network as I believe this would be useful to not just our project but also many other hackathon projects + the entire existing Tron ecosystem greatly.

I ask that anyone reading this to also reach out to them to encourage them to support Tron, maybe even enter the hackathon on the forum - ecosystem or web3 tracks to add support.

[wescosmic]

Hey all,

So we added gGBP a little while ago as a bit of experimentation based on recent news.

Would anyone like to see any other gStables on Nile? maybe, you’ll like to experiment with it using your own native currency. Let us know, we’d love to explore collab.

We’ll appreciate a follow + like + retweet in support. Thanks!

goStables Protocol

[mattwalford]

make one for bahamas that FTX can use!

[wescosmic]

goStables Improvement Proposal - gSIP-01 Draft

goStables Improvement Proposal - gSIP-01 Draft:
Sharing part of protocol vault reserves via a credit facility on non USDD Asset Vaults.

Abstract:
Alice deposits 1 BTC (~$18000) to vault.
Alice can borrow up to ~15% (~$2700) equiv in gStables at 0% interest rate.
Alice can borrow beyond ~15% at a fair interest rate using the protocol vault reserves as shared collateral.
Alice repays her loan whenever and can withdraw her 1 BTC.

Details:
Note - gStables are backed by USDD collateral only.
In the future once funding resources + support are available, there can be new vault mechanics that enables support for TRX, BTC and ETH as collateral with added benefits. Here’s how this would work:
Alice deposits asset X to Vault.
Deposit is locked for ~180 days.
Vault →

• Supplies asset to JustLend as collateral.
• Borrows X% in lowest interest stablecoin.
• Swaps stablecoin to USDD (if req).
• Supplies USDD on JustLend as collateral.
• Borrows 50% of X in lowest interest stablecoin.
• Swaps stablecoin to USDD (if req).
• Swaps USDD to relevant gStable.
• Adds gStable to Alice’s personal credit limit with 0% interest borrowing.

The Vault earns N% of protocol swap fees which it uses to repay the loan.
JustLend yields earned on Vault Deposits is used to repay the loan.
The Vault earns N% of the swap’s JustLend yield which it adds as collateral reserves.

The combination of increasing collateral and repaying the loan means that the protocol can provide an extended credit limit to Alice. As the protocol collateral reserves grow, so too does the protocol credit limit for all Vault users.

Alice can at some point potentially borrow greater than her personal credit allowance/collateral at a fair interest rate. X1% of the interest is burned and X2% distributed to USDD Vault users.

Alice can repay all her borrowed gStables to withdraw her initial asset after the lock period. Her protocol credit limit is then divided proportionally amongst the remaining Vault users.

The borrow rates and credit limit will be set within safe ranges per supported asset and role, to guarantee zero liquidation events and a healthy growth of the protocol’s shared reserves. This is one of the varied future governance config options.

TRX Vaults would have a special role:
If Alice deposits TRX, a portion of this is staked for energy + bandwidth to benefit everyone using the protocol via subsidized network fees. Borrow rate and credit limit would reflect this role.

Any thoughts, feedback, support is appreciated!

[wescosmic]

Hey all, voting has opened up on Devpost. We’ll really appreciate a vote of support, Thanks!

[antonio]

Hola, es interesante y creo necesario que todo el mundo conozca el ámbito criptográfico con sus pros y sus contras y sean ellos mismos quienes decidan si quieren formar parte de otro tipo de economía, una buena manera de poder desarrollarse. El planteamiento de recoger ingresos para poder mantener las ganancias del vault me parece muy bien, debído a la fluctuación de la moneda estable.

[wescosmic]

Sí, esto puede ser muy beneficioso para garantizar un crecimiento de protocolo saludable y sostenible, al mismo tiempo que permite que cualquier persona que use Vaults se beneficie de este crecimiento. ¡Gracias por la respuesta!

[wescosmic]

While we wait for the outcome of the hackathon, I’ve been creating a mockup UI for a simple web3 bank use-case that will utilize goStables protocol.

Motivation: Although I’m originally from the Caribbean, I’ve been nomadic for the past couple years, so for me, a dapp like this would be very useful as I travel and already interact with different currencies in different countries in the real world. I believe it could be very useful to many others as well.

Currently a work in progress but its one of the things we want to buidl+ship once resources are in place to effectively continue delivering utility and value.

Spoilers ahead. Click to view:

What do you all think? I would love to hear some feedback:

[YungCee]

The trons is a good life and it’s all good

[wescosmic]

I have some interesting questions for the community.

If blockchain is considered a public good for all just as the internet it runs on:

Should every nation have their own public chain stablecoin?

Financial Action Task Force blacklist

Should the governance of each public chain stablecoin be performed by ONLY citizens of the country the stablecoin references?

Should there be a global DAO (with its micro-DAOs) for law enforcement?

Would gStables (powered by USDD) existing for every country of the world help in getting us to a better place globally, collectively?

Would gStables for Network States be viable?

The Network State: How To Start a New Country

It would be very interesting to read anyone’s perspectives on these…

[wescosmic]

Here’s some additional interesting reading:

Special drawing rights

Factors That Have Led to the Collapse of the Bretton Woods System

Eichengreen, B. (2004) The Dollar and the New Bretton Woods System. Thornton Lecture, Cass Business School, London- https://eml.berkeley.edu/~eichengr/policy/cityuniversitylecture2jan3-05.pdf

Could we build things much fairer and more streamlined, full decentralized, ontop of goStables Protocol?

[wescosmic]

Hey all, we’ve added goStables Protocol to the Magic Store. Have a look:

https://magic.store/app/gostables-protocol

[wescosmic]

Yayy! goStables won 5th Place!

We wish to thank the organizers and the community showing interest and appreciation for our project!

Also, congrats to all the winners and a pre-cheers for all participants that will have an opportunity in the upcoming Season 4 Hackathon.

Let’s keep building. Together.

[Nana66419]

You did well. U deserved it. Keep building

[antonio]

Hola, un buen proyecto siga avanzando para el próximo hackhaton

[constantinpricope201]

This is one of the projects that I will love to see in production.

Although for me it seems like the mechanism to keep the peg is not stable.
Let’s continue the discursion summarizing the risk involve of depeg (gXCD XCD if XDC raises exponential you will not have enough funds to change to USDD)

Vault at current are not frozen 72 hours.
It will be nice to add some errors in case a transaction is failing.

[wescosmic]

Appreciate this feedback! On Nile testnet, the vault lock is set for ~2 mins purposely so anyone playing with it won’t have to wait the full 72 hours.

We’ll need to develop multiple strategies to increase over-collateralization. Since gStables are powered via USDD which is 1:1 with USD that means the protocol’s over-collat ratio can be much lower. An over-collat ratio above ~103% can be considered a healthy range. So a 3%+ of in-Swap buffer that grows continuously as long as the protocol and yield gen sources exist. Also, fortunately the forex rates of Caribbean currencies aren’t extremely volatile…
eg. XCD

eg. TTD

Currently there’s 2 strategies using 1 yield gen source - JustLend:

• The USDD liquidity in the gStable Swaps earning JL yield

• The USDD vault where early supporters of a gStable can collectively stake to contribute to its over-collateralisation while earning a portion of the protocol fees.

We think this is a reasonable base to start from that is viable enough for exploration and usage.

There are a couple of production readiness tasks to be completed within the next month.
The protocol will then be deployed to mainnet around the end of Jan 2023.

We’ll then be focusing on the new vault mechanics (strategy 3) proposed in gSIP-01 mentioned in previous post. What we’re also demonstrating here is a way for anyone, not just us, to ideate and build their own strategy that plugs into the protocol to support it’s overall stability. With enough extra collat built over time we can better support revaluation events…

When the protocol’s over-collat ratio goes beyond 5%+, the community vault credit facility in gSIP-01 comes into play - scalar inversion of the energy flow to establish a flux waveform on a carrier wave.

We chose to use USDD as the base collateral backing gStables being minted instead of directly using other crypto assets as collateral eg. BTC, TRX etc. This enables us to shield the protocol and its users from crypto market volatility and bakes in the required stablecoin liquidity. The TDR already does a good job defending the USDD peg as they collectively can do so with their liquidity in relation to the wider crypto market domains.

An early idea of strategy 4 for when deploying gStables for other regions:
Creating a crowdfund page for each of the new regions. Supporters stake their USDD, crypto assets. When the goal is met the region is deployed to mainnet with seed liquidity over the min-collat ratio. Launch supporters earn all the protocol fees of that region for a specified period. A small fee could be charged per funding goal/region that helps support the Caribbean gStables over-collat ratio.

For anyone interested, join our TG community where we can chat about ways to strengthen the protocol even further, together - Telegram: Contact @goStables

We can then use this forum to communicate progress of the protocol as it evolves.

[wescosmic]

So we’re also architecting this protocol within a particular meta-contextual domain. This allows us to approach building solutions from “cosmic” perspectives lol. Here’s a bit if anyone wants a peek into the mental process. Maybe someone reading this also sees the meta research/experimental implications of what we’re attempting and would like to contribute/collab. Some abstract thought required for this key:

Consider what we’re building as the form of a virtualized fusion energy device.
Tokenarc reactor - goStables protocol
Rare electro-magnetic minerals/Direct Current - BTC, TRX, etc
Conductive stabilisation element/Alternating Current - USDD
Conduits - gStables- gXCD,gTTDD etc
Base signal gen source 1/catalyst - JustLend
Carrier wave - healthy over-collat ratio per gStable
Flux waveform - excess USDD in protocol is used as a data point for regulating the limits of the credit facility.

A connected architecture module but not directly in goStables domain scope -
Micro singularity - [Redacted] under observation and testing
Micro singularity shielding - privacy via TronZ