Ubiquity Dollar Protocol Overview
This section provides a high-level overview of the uAD protocol. For an in-depth analysis, please read the Tokenomics page.
The cryptocurrency industry is in a state of constant evolution. It is a rapidly changing landscape that has undergone significant transformation over the past few years. With each new innovation, new challenges arise, presenting exciting opportunities for entities to engage in strategic battles for long-term growth and price stability. At Ubiquity we embrace this future and do so by looking into proven methods and processes from financial past and integrating them with cutting edge technology and models. While that sound complicated (which it can be at times) we believe in being transparent and keeping things simple. Simplicity stands the test of time and gains the trust of our users and supporters.
A particularly salient issue facing the industry is the long-standing debate surrounding the volatility and instability of cryptocurrencies. While they have proven to be attractive options for speculators looking to capitalize on investment opportunities, they have not been reliable stores of long-term value. Looking to address this problem, centralized stablecoins have emerged that are pegged to the US dollar and controlled by a central authority.
However, this solution contradicts the very principles of cryptocurrency, which emphasizes decentralization and freedom from external intervention. What the industry requires is a stablecoin that is not only stable but also independent of centralized currencies. Moreover, such a token should be adaptable and capable of evolving as the industry continues to grow and change. This embodies our goal and what we at Ubiquity believe in. The end result is the fully collateralized polymorphic Ubiquity Dollar.
The uAD. It might sound complicated but it is actually pretty simple. Our coin is fully backed by assets and is overseen by our model which helps dampen market bumps to keep us on track and on peg. But that's not all. the uAD is an adaptable stablecoin that can evolve whenever needed.
Without stability, we have nothing.
The Ubiquity Dollar (uAD) stablecoin is Ubiquity’s flagship product and the first polymorphic stablecoin in decentralized finance. uAD is a sovereign, scalable, and secure digital dollar designed to become the reserve currency of DeFi.
uAD in detail
The Ubiquity Dollar (uAD) is an epoch-less, elastic supply stablecoin. The protocol is designed to prevent prolonged debt cycles and vastly improves a participant's experience by eliminating epochs and epoch-based mechanisms such as "staging." The team has spent years researching the pitfalls of other stablecoins including Empty Set Dollar, Basis Cash, Iron Finance and Luna to create a stablecoin that is made with stability, upgradeability, and scalability in mind.
The primary benefit of holding and using a stablecoin like uAD is its pegged value - in this case, $1. Naturally, the uAD protocol anticipates inflation cycles (price of uAD goes above $1) and debt cycles (price of uAD goes below $1).
- When the price of uAD rises above $1, new uAD is minted. The newly minted uAD can be redeemed by uCR NFT holders and is distributed amongst bonded uAD holders, DEX liquidity providers and the protocol treasury. This supply expansion of uAD is intended to reduce the price of uAD back to $1.00.
- When the price of uAD falls below $1.00, uAD holders are incentivized to burn their uAD in exchange for Ubiquity Credits (uCR). uCR is issued at a premium and can be redeemed 1:1 for uAD when the price rises above $1 again. This supply contraction of uAD is intended to increase demand for uAD, and so, increase its price.
To be clear, there are many competitors in this space (@fraxfinance, @MakerDAO) aiming towards this goal. The difference is in the design of uAD as a response to the current problems algorithmic stablecoins are currently facing.
Our research concludes that many algorithmic stablecoins are built on rigid economic strategies that make it difficult to respond to adverse situations. Scenarios such as the changing dynamic of the DeFi ecosystem and security breaches can threaten the stability of the algorithmic dollar.
On the other hand, the collateralized Ubiquity Dollar is designed with a polymorphic architecture that maximizes the flexibility of upgrading stabilization mechanisms, all through a decentralized, transparent, community-driven mechanism. This allows the platform to accommodate the needs of a diverse range of users and applications.
Usage & Integration
The ultimate goal of Ubiquity DAO is to drive mass adoption of the Ubiquity Dollar. This is accomplished through integrations which allow the Ubiquity Dollar to be used in real-world scenarios. The starting point for this adoption is to focus on solidifying ourselves as the premier stablecoin of crypto gaming and the metaverse.
While crypto gaming is a high growth sector, stablecoins are severally underrepresented in the space. We plan to tackle this problem by serving these communities directly and providing specialized support to GameFi projects, such as helping design bespoke tokenomics solutions, offering Ubiquity Credit incentives to projects that implement the Ubiquity Dollar, and sharing proprietary resources such as the Ubiquity Cashback Rewards System.
If you're interested in learning more, we suggest that you take a look at some of the more in-depth Go-To-Market & Adoption Strategy, where we break down the various ways we are serving companies and DAOs in this space.
We also recommend that you check out our other documentation, like the Tokenomics overview and uAD token documentation pages.
For technical details related to each of the smart contracts the protocol is comprised of, see the Ubiquity Smart Contracts page, which contains brief descriptions for each contract and a link directly to the Solidity code on our Github.
If you have any questions, or if you are a gaming organization who would like to partner with us, feel free to drop by our Discord server!Value Proposition