· Executive summary
YAOcash is the first open-source cross-chain fractional-algorithmic stablecoin protocol that is located on . The mission of YAOcash is to provide a highly scalable, decentralized, algorithmic stablecoin backed by a pool of digital assets and stablecoin.
YAOcash is the industry’s first cross-chain stablecoin with parts of its supply backed by digital assets and algorithm separately. The ratio of digital asset and algorithm depends on the market pricing of the YAOcash stablecoin. If YAOcash is trading at above $1, the protocol decreases the collateral ratio decrease, and vice versa.
YAOcash is keen on emphasizing a highly autonomous, decentralized community — community governed. It uses Uniswap and CeX (BTC, ETH, YAO, USDT, USDC etc time-weighted average prices) and Chainlink (USD price) oracles for pricing. The dual token yaoUSD is the stablecoin targeting around $1/coin. YAO is the governance token that can accrues fees, governance and excess collateral value. YAOcash uses principles from automated market makers like Uniswap to create swap-based price realization and real-time stabilization incentives through arbitrage.
· Pain points & solutions
Breaking down to the market pain points, the algorithmic stablecoin are difficult to grow in scale, and rather volatile; meanwhile the asset backed stablecoins are hard to incentivize liquidity, it shows centralization and consist of counterparty risk, collateralized stablecoins either have custodial risk or require on-chain overcollateralization. Most algorithmic stablecoins aren’t stable, they don’t do what they were designed to. They can get stuck under $1, when the price to buy bonds, doesn’t make sense. When comparing YAOcash to all the other coin protocols, the breauty of its design implementations is very well highlighted, yaoCASH transition to a more decentralized stablecoin (or a basket of digital assets), which can’t be frozen, it is the 1st cross-chain, asset-backed & fractional algorithmic stablecoin that is highly scalable, permissionless, extremely stable with boosted liquidity!
· So why is YAO so unique?
The milestone innovation of YAOcash is that it uses the hybrid working model between asset-backed and fractional algo model, which is the same model as Uniswap AMM constant product pricing function. The backup asset such as BTC, ETH, YAO and other stablecoin presents YAOcash as a truly decentralized stablecoin. On top of that, by using decentralized price oracle from Uniswap and Chainlink, the price manipulation is reduced to the minimum, resulting in an innovative approach to stablecoin price realization.
The characteristics of YAOcash can be summarized in three main directions, first of all,YAOcash allow the arbtitrage opportunities to keep the price stable, yaoUSD can always be minted and redeemed from the protocol for $1 in value. This allows arbitrageurs to balance the supply and demand of yaoUSD. Secondly, the protocol is designed to adjust the ratio automatically during yaoUSD expansion and retraction. To achieve a balancing collateral ratio, increased YAO must be deposited to mint yaoUSD during retraction, the protocol auto re-collateralized and increase the ratio. Plus, being a governance token, YAO is a protocol token that can increase the value and utility of the entire yaoCASH ecosystem.
It is mean to be volatile and hold rights to govern the excess collateral of the protocol, it also provides farmers with liquidity rewards and incentivize the YAO ecosystem.