The Asset Reserve Protocol: XenophonDAO (XPH) will be the Next OHM on BSC
Stable coins are closely related to other encrypted digital currencies around the world. The governments of countries such as France are trying to introduce them into their financial markets. XenophonDAO hopes to create a new version of stablecoin controlled by its community members. The project aims to create a new way for users to interact with cryptocurrencies while limiting volatility and still having floating prices.
1. What is XenophonDAO (XPH)?
XenophonDAO hopes to change the nature of stablecoins. Most stablecoins are linked to underlying assets (such as the U.S. dollar) to maintain value in volatile markets. Unlike traditional stablecoins, XenophonDAO uses a unique system to keep its value stable.
To maintain the value of XPH tokens, members of the Decentralized Autonomous Organization (DAO) vote on whether to mint new coins or destroy existing coins. When it finds that coins are undervalued, it burns coins to increase their value. When it believes that a token is overvalued, it will mint new coins to reduce the value of all coins, using market supply and demand as a constant standard.
XenophonDAO will also hold DAI in its Treasury, partly used to support the price of the tokens. DAI token is XPH’s lower price limit, but in fact, its transaction price is higher. The system allows the price of tokens to be driven by the market, but also allows it to have certain control over the price.
XPH is the native token of the XenophonDAO. It uses the BEP-20 protocol, which means it uses the BSC network.
2. Why do we need XenophonDAO (XPH) in the first place?
Due to the lack of volatility compared with tokens such as Bitcoin and Ethereum, stablecoins linked to the U.S. dollar have become an important part of cryptocurrencies. Users feel comfortable using stablecoins for transactions because they know they have the same purchasing power today and tomorrow. But this is a fallacy. The U.S. dollar is controlled by the U.S. government and the Federal Reserve. This means that the depreciation of the U.S. dollar also means the depreciation of these stable currencies.
XenophonDAO (XPH) aims to solve this problem by creating a free-floating reserve currency XPH backed by a basket of assets. By focusing on supply growth rather than price appreciation, XenophonDAO hopes that XPH can act as a currency that can maintain its purchasing power regardless of market fluctuations.
3. XPH Usages
XPH tokens can be used in a variety of ways.
Governance voting rights
It can be used to vote in proposals, allowing token holders to have a say in the whereabouts of the project.
Staking is one of the main strategies for the value acquisition of Xenophon. The purpose is to allow users to generate compound interest through staking. Profits or rewards come from the sales of bonds. The income is different according to the amount of staked XPH in the Xenophon Protocol and the reward rate set by the currency. At the end of each period, the Treasury mints XPH at the set reward rate. These XPHs will be distributed to all stakers in the Protocol.
Users can also purchase encrypted bonds through XPH. This opportunity is much less risky than staking, but the reward is also lower. These bonds are used to provide liquidity. By adding the liquidity of BUSD-XPH and selling XPH at a discount, the Xenophon Protocol can better obtain its liquidity and reserve Treasury assets, and at the same time, it can give a very large discount when the XPH is reached, the XPH obtained will be released in a 5-day lock-up period, and part of it will be released every day.
XPH is a governance token designed to create stable assets that can be used as a form of payment. It also allows users to earn interest from their XPH governance positions.
4. A brief history of XenophonDAO (XPH)
XenophonDAO (XPH) was launched on November 10;
According to reports from overseas communities, A16Z and Magic Box Capital participated in the institutional round of financing;
On November 21st, the whitelist TOP200 campaign was launched. According to official statistics, a total of more than 500 users from 33 countries participated;
The IDO was launched on November 29. The whitelisted users were not accurate, resulting in a waste of whitelist qualifications. Many accurate users did not qualify for the whitelist, so the IDO was suspended;
On December 1st, the official returned the IDO funds raised and stated that the qualifications for the first round of participation in the whitelist of users will be retained, and IDO will be restarted.
5. Three ways to obtain XPH:
The latest round of IDO is about to begin, this is the best way for the community to have the opportunity to participate in the early subscription；
You can choose to buy XPH from the BUSB-XPH pool on PancakeSwap after it goes live in December, and then stake XPH to Xenophon to get more XPH.
You can also buy bonds (Bond) directly on the Xenophon platform at a discount to get XPH, stake XPH again to get more XPH, and later it will add other trading pools and support other currencies to buy bonds (Bond).
6. Is XenophonDAO (XPH) a good investment?
XPH hopes to become a stable value store agreement. For example, the price of OHM has fluctuated greatly in the past year. It has risen to nearly US$1,500 and has fallen to around US$700. These changes are contrary to the desired stability of the project. However, the volatility is most likely due to the number of tokens issued. If XPH can prove that it can be stable, it may be a considerable investment.