💡Docs

When we started working on this project 2 years ago, we prepared this long dissertation on why Luna and it's stablecoin would not last. We had planned to make it part of our documentation. We then watched as Luna climbed to all time highs over $100 and thought...this isn't going to end well. You all know what happened next.

Luna was well meaning in what they were trying to do. It's just...over collateralized stable coins don't work. Others will try, and they will fail. Using over collateralized assets to back another asset is like taking a picture of a beautiful woman...at one moment in time...and expecting her to maintain her beauty...forever. Eventually, over a long enough time, her looks will fade.

Algorithmic stable coins are no better.

Unless you think going to bed with 100 of something and waking up with 60 of the same thing is a good idea. Algorithmic stable coins inflate into thin air until they can't anymore. Then they deflate and people get upset and sell driving the price down even further.

So, unfortunately we've had to rely on centralized systems to manage our money.

Tether is the largest stablecoin by marketcap at the time that I'm typing this. I can tell you without a doubt that tether's assets are not backed 1:1 by the US dollar. In fact in the latest "audit" of Tether's assets it was determined that USDT was only 3% backed by the dollar.

I don't know why people didn't stop using USDT immediately. It's only a matter of time before it collapses.

BUSD and USDC WERE the shining examples of what a centralized stablecoin system looks like. But because they require off-chain management and oversight by humans, USDC lost it's peg due to the 2023 banking crisis. There weren't enough dollars to back USDC. This exposed USDC as being totally dependent on the centralized banking system. If more banks fail, this will put pressure on USDC. BUSD was forced to stop minting by a unilateral decision from a regulator! There was no justification for it. Imagine an entire business being shut down because of one decision by a regulator. No court date. No opportunity to share your case with the public. These same regulators oversee USDC. So it's believed that whoever is behind USDC influenced the regulators decision, only to then lose it's peg. Oh the irony. These are the things that can happen when you allow your entities to be governed by centralized authorities that are hostile to crypto.

Furthermore, if you understand the core values of crypto, you also understand that since the gold standard was done away with in 1973 (all dollars used to be backed by gold) that ALL fiat is unbacked by anything of tangible value.

It is simply printed out of thin air.

So the fact that stable coins are backed by US dollars means that stable coins are backed thin air AKA US treasury bills, which... given the recent growth of stable coins, will only attribute to more US treasury bills. US treasury bills are debt. So the more stable coins grow, the more US debt has to be created. This is true for fiat as well. It is absolutely ridiculous that some stable coins can't keep enough US dollar reserves to back its coins, when the dollar is literally printed out of nothing.

If only there was a ledger system that was created...that was instantly verifiable by anyone in the world at anytime...that could not be tampered with, changed or otherwise fudged with for any reason...

Wait...DON'T WE HAVE SOMETHING LIKE THAT?

BITCOIN is the most underrated, undervalued, underutilized system in the world. Why? Because those with their own agendas (and tokens) told you that Bitcoin was slow. And the moonboy or moongirl in you told you that it would be better to invest in meme coins. But Bitcoin has been running, without failure, for over a decade, with thousands of miners working to verify a single block. It's value has risen and fallen through every type of market you can throw at it...and it's still here. Over the years it has beaten gold, stocks, and the dollar.

It has survived. It will survive.

No other blockchain can say that they have run continuously for over a decade without interruption of service. Some blockchains can't even say that they've gone a month without having issues.

With fiat being able to be printed at a moment's notice, It is harder than ever to mine a block of Bitcoin. 10 times harder than what it was just 4 years ago. Imagine fiat being 10 times harder to produce or 10 times more expensive to make. In any other market, something being 10 times more expensive to produce would be AT LEAST 10 times more expensive. Based on that fact Bitcoin should be $170,000

https://www.blockchain.com/explorer/charts/difficulty (bitcoin mining difficulty chart)

But the crypto world has largely ignored Bitcoin because they can't control it. The traditional finance world doesn't love Bitcoin (mainly because of it's transparency) because (to the uniformed) Bitcoin doesn't provide a yield. Even though it has been proven that the yield that fiat provides pales in comparison to the value it loses due to inflation, many people flock to fiat because if you put 1 in you might get 1.001 back.

So here's our idea:

1. Use the power and the proven value of the Bitcoin network to FORGE a new coin. Burn Bitcoin to create this new coin. Just like a blacksmith would take the raw materials to produce a coin or a sword. The Bitcoin is BURNED forever and creates a faster, greener coin able to be transacted for virtually any amount. This means that every new coin created is instantly verifiable on the blockchain the moment it's created and also cannot be created unless Bitcoin is burned (forever) This makes BTC even more scarce.

2. This new coin that's created provides a yield based on network activity, not inflation. Holders get a piece of every transaction.

How is this possible?

This is exactly what everyone said when we approached them with this idea. We were told by every developer that we approached that this was impossible. So...not being the most technical people...we taught ourselves how to code. Sleepless nights fights and tears ensued. And eventually, after over a year of working with a few developers who refused to take no for an answer...we cracked the code.

The first ever token created by burning a different coin.

The first thing we needed was a verifiable 1:1 BTC network in a developer friendly environment.

One that could scale.

Binance was able to provide that for us through their wrapped BTC token. https://explorer.btc.com/btc/address/3LYJfcfHPXYJreMsASk2jkn69LWEYKzexb

Binance is the #1 crypto exchange and pegs BTCB 1:1 with BTC via their assets. They have billions in BTC reserves. When BTCB is burned it is burned forever and the user cannot retrieve their BTC. BTCB is burned by transferring to a dead wallet. A wallet that no one can access and no one has the private keys to.

When you burn BTC you receive the equivalent amount of forged tokens minus a 0.8% slippage fee. This fee protects the system from price volatility. If you burn $20,000 in BTC you will receive back 20,000 Forged tokens minus the 0.8% slippage fee. Keep in mind that the Forged tokens market price is determined by the behaviour of its market participants. It's possible the $ value could be less or more than the $ value of what you burned.

Upon receiving your newly forged tokens (which you can only receive by burning BTC or by buying directly on the market) holders receive yield by simply holding the token in their wallet. (More on this later)

The Bitcoin price is determined by oracle, to prevent on chain price manipulation by bad actors. Someone with enough Bitcoin could manipulate the price on chain. Using an oracle makes this impossible.