This section provides a high-level overview of the uAD protocol. For a detailed explanation, please read the Tokenomics page.
The cryptocurrency industry is ever-evolving and the landscape has been heavily changing through the past couple of years. Each new innovation presents new problems to solve and it's exciting to watch players battle over long-term growth and price action.
For example, the eternal argument against cryptocurrencies is their instability and volatility. As such, they have become the playground of speculators looking to move investments but are poor stores of long-term value. The response to this initial problem is to create centralized stablecoins that are controlled and pegged to the United States Dollar.
While this is a solution that has somewhat worked, relying on a centrally controlled currency runs counter to the principles of crypto itself which is being free of intervention. We wanted a token that is both stable and independent of centrally controlled currencies. But that's not all. What the industry needs is an adaptable stablecoin that can evolve whenever needed.
Without stability, we have nothing.
Hence the birthing of the Ubiquity Dollar (uAD) stablecoin, 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.
Ubiquity Algorithmic 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 such as Empty Set Dollar 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 demand for uAD in order to decrease its price back down to $1.
- When the price of uAD falls below $1, 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.
Most 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. The 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.
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 & 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 Lootbox.
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