Mithril Cash – Potential future Algorithmic Stablecoin project?

How Mithril Cash Works

Mithril Cash is an Algorithmic Stablecoin fork from Basic Cash. According to the project, the reason for choosing Basic Cash is because this is a very well designed Stablecoin among many Algorithmic Stablecoins today. It has proven to be highly resilient, and has the widest distribution of users.

The way the Mithril Cash protocol works is similar to how centralized banks in the real world manipulate currency prices through monetary policies. And specifically, through the connection between supply and demand, the goal of Mithril Cash is to adjust the project’s Stablecoin price to $1. Instead of being run by a centralized organization, the rules and algorithms to do these things will be established in smart contracts.

Mithril Cash will launch without a team or investors allocation. Only those who contribute to the project will receive the reward.

There are 3 main tokens:

• Mithril Cash (MIC).
• Mithril Share (MIS).
• Mithril Bond (MIB).

MIC is Stablecoins in the system with a value of $1. The users who own the MIS will be the backbone of the system, providing resources and instructions for the protocol. In return, these users will receive any new supply of coins that come into the system. MICs and MIBs are designed to work helping MICs towards $1. The goal is to keep the MIC between $0.99 and $1.01 in the long run so it can be a viable stablecoin.

What if the MIC price is greater than $1?

During a seigniorage time of 24h, if the MIC price is greater than $1, the supply of MICs will increase and be distributed to MIS holders who have staked MIS in Boardroom, and MIB can be exchanged for MICs at a ratio of 1:1.

What if the MIC price is less than $1?

Conversely, a decrease in the supply of MICs will help the price return to $1. During this period, users can purchase MIBs with MICs at a discounted price, removing MICs from the market. Users can then exchange MIB to MIC (1:1) to make a profit in the future when the MIC is above $1 (return to the above case).

Whenever a user purchases a MIB with a MIC, the MIC is burned, reducing the circulating supply of MICs. Purchased MIB can only be exchanged 1:1 to MIC when the MIC price is above $1. This prevents supply expansion during the contraction phase.

Read more:

The supply elasticity of Basis Cash

Basis cash has 3 Tokens: BAC, BAS, BAB.

BAC is a Stablecoin – it is pegged to 1$ and has a daily stabilization mechanism.

• When BAC trades above 1$:

BAS Holder can Stake BAS => Earn Inflation (Earn BAC) according to the formula

(Your BAS/ Circulating Supply BAS) * Total Supply BAC * (TWAP BAC Price – 1)

=> BAS Holder earns BAC Free, so according to the model theory, they will sell to the market to make a profit => Selling pressure pushes BAC price down to 1$.

• When BAC trades below $1:

Holder BAC can use BAC to buy BAB at the rate BAB = (BAC Price)^2.

BAB does not expire and can be exchanged when the price of BAC is greater than 1$.

For example, when a user is holding 10 BAC and the price of each BAC is $0.8, then the user can use 10 BAC to buy 15,625 BAB.

Let’s say, 3 days after BAC price increase to 1$, then user can exchange 15.625 BAB = 15.625 BAC and sell BAC on DEX and earn almost 50% profit from his 10 BAC.

According to this pattern, buying pressure pushes the price of BAC to $1.

MIC . Distribution Event

The event officially operates from December 30, 20. Specifically, users who deposit the following tokens or stablecoins will receive MICs:

• Stablecoins: DAI, USDT, USDC, BUSD, sUSD, ESD, BAC, FRAX.
• Communities: MITH, YFI, SUSHI, CREAM, COMP, AAVE, CRV, LINK.

160,000 MIC will be distributed evenly across all 16 tokens/stablecoins listed above in the initial distribution at the rate of 2,000 MIC/day within 5 days.

MIS will also begin to be distributed through providing liquidity to the pair MIC-USDT billion on Sushiswap. This pool will distribute 750,000 MIS, starting with 6,250 MIS and reducing 25% every 30 days.

The MIS is also distributed to the pair’s liquidity providers MIS-USDTILLION Sushiswap, distributed a total of 250,000 MIS over 365 days, with an equal amount distributed each day.