Introduction
Decentralized, Composable, Dynamic Rebase and Fractional Reserve

Overview

Inspired by Empty Set Finance and its predecessors, Empty Set Crypto Protocol builds stablecoins that serve as the reserve currency of Decentralized Finance.
ESC is an algorithmic token pegged to CRO running on the Cronos network. The key insight around Empty Set Crypto is that stablecoin pegs are ultimately determined by market demand and supply forces and that creating incentive mechanisms around this is key.
To meet the optimal market demand, ESC’s total supply can either expand or contract. These mechanisms are mandatory in order to counteract the scenarios of having ESC trading above or below 1 CRO.

Features

Using a variety of mechanisms, Empty Set Crypto is able to achieve a number of unique properties:
  • Dynamic Rebase
ESC uses Dynamic Rebase Algorithm with supply to keep price pegged to CRO. When TWAP > 1 CRO (expansion phase), more ESC is minted. When TWAP < 1 CRO (contraction phase), new coupons (debt) with premium are generated.
  • Fractional Reserve
Protocol stores part of the expansion fund as a reserve treasury. Fractional Reserve helps protocol fastback on the expansion track from the contraction phase.
  • Composable
ESC follows the CRC-20 token standard. This makes it work seamlessly across the decentralized finance infrastructure and reduces the likelihood of unforeseen bugs in integrated protocols.
  • Decentralized
When the Empty Set Crypto protocol works stable, the team will make the protocol be completely decentralized on-chain governance. Additionally, the protocol launched with 0 initial supply and no pre-mine for the anonymous founding team.

Token and Coupons

ESC - Empty Set Crypto Token

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ESCrypto (ESC): 0x1eCAF6a3551E5822F142c9689D8F36a9B5F68217
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Empty Set Crypto token is ESC, the protocol’s stablecoin and governance token. The built-in stability mechanism in the protocol deterministically expands and contracts the ESC supply to maintain ESC's peg to 1 CRO in the long run.

Coupons

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Coupons contract//
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When the TWAP (Time Weighted Average Price) of ESC < 1 CRO, Coupons get issued and can be bought with ESC at a discount. Exchanging ESC for Coupons burns ESC tokens, taking them out of circulation (deflation) and helping to get the price back up to 1 CRO.
These Coupons can be redeemed for ESC when the price > 1 CRO in the future. This amounts to inflation and sells pressure for ESC when it is above peg, helping to push it back toward 1 CRO.
Important to note is that Coupons face an expiry of 1460 epochs (365 days) after purchase.
Last modified 1mo ago