Mortgage-based distributed stablecoins: new ideas for inclusive finance, new trends in distributed finance

Author: Liang Wenhui

With the global economy falling into low-speed growth, various countries are actively carrying out reforms and explorations. From the perspective of financial stability, many countries are actively conducting research on digital economic transformation, hoping to realize digital transformation through cutting-edge technologies such as blockchain Presumed economic growth, of which blockchain-based stablecoins are an area of ​​focus for research by governments of all countries, with the aim of creating a more stable financial environment and financial services that cover more people.

Currently, there are more than 57 types of blockchain-based stablecoins that have been released worldwide, but there are only a handful of projects that can satisfy the settlement function, convenient liquidity, fund security, and profitability.

In order to cope with the above problems, a blockchain company named Timvi has recently officially launched a new financial platform ecosystem ( ) to take advantage of its blockchain technology, code auditing, and product innovation. Created a new generation of mortgage stable algorithm TMV, and opened TBox (wallet based on blockchain technology, issuing stable coins through collateral to ensure the security of assets), Tbond (a tool for issuing bonds), leverage Products, 1BY1 and Gate and other personalized services can meet the different needs of ordinary users, professional investors and traders.

Take the Gate service as an example. For users with TBox accounts, Timvi provides TMV and Ethereum currency exchange services for them, which brings great convenience to users with financial needs.

Compared with the current similar stablecoins Maker DAO and USDT, TMV coins have a more complete design in terms of degree of distribution, capital reserve adequacy, and user experience:

Distributed systems: removing doubts about trust

At present, the mainstream stablecoins in the market generally have centralization and trust issues. For example, the main body behind USDT is Tether. There are some problems with centralized operations, such as opaque fund reserves. This also leads to higher market price fluctuations of USDT. The US dollar is anchored on a one-to-one exchange rate, but the price is always lower than one dollar and the lowest has fallen to 0.79 dollars.

TMV coins are built on a distributed system. Compared to USDT, TMV does not have the risk of centralized governance. Users issue TMV coins by collateralizing Ethereum coins, and are supported by excess mortgage and asset restructuring mechanisms. Stability is one of the most trusted blockchains recognized by many developers.

Therefore, users do not need to worry about counterparty risks. Business completion is entirely based on smart contracts on the blockchain. There is no single point of manipulation risk. Even the development team cannot tamper or transfer user assets.

Price Stability : Anchored USD

TMV coins are pegged to the US dollar with a fixed exchange rate-the price of each TMV is always set at $ 1, with stable properties, suitable for transactions with a long settlement cycle.

Fund security: excess mortgage guarantees fund security

As we all know, the capital reserve behind USDT includes debts that are less liquid than cash, such as accounts receivable, so the security of each USDT's capital reserve is poor. TMV coins are obtained by over-collateralizing Ethereum coins. Because of the liquidity of Ethereum coins, TMV's mortgage reserve adequacy ratio is also higher.

TMV coin has set up a risk warning mechanism. When the price of collateral falls more than a preset ratio, users must increase the collateral in time, otherwise the system will automatically start account settlement. Any user can participate in liquidation and get commissions, which ensures that the value of the collateral in the system is always higher than the TMV coins in circulation, and the user does not need to worry about being unable to redeem the collateral. This provides the market with convenient liquidity, while also eliminating the risk of “printing money out of thin air”.

Profitability and Liquidity: Stablecoins Empower Inclusive Finance

Under the traditional financial system, financial institutions have high service thresholds and long processes, and digital stablecoins can provide more friendly solutions. Taking the financial scenario as an example, TMV builds a blockchain-based distributed intelligent mortgage lending platform. The user mortgages the Ethereum coin to obtain TMV, and then uses it as a working capital for investment or consumption. However, in this process, the user did not lose the ownership of the Ethereum coin it mortgaged, and it can be redeemed after returning the TMV coin.

In addition, compared to Maker DAO, we found that Timvi provides more friendly service and easier to understand operation mode.

First, Timvi provides services and tools that can be used to create passive income and hedging, including Tbond, leveraged products, 1by1 and Gate. In addition, Timvi does not charge management fees for TBox accounts held by users, but Maker DAO charges a dual currency model of certain usage fees. In terms of token design, the Timvi system uses only a single currency model, while Maker DAO has designed a token mechanism for voting. The existence of voting tokens is a risk of manipulation of the Maker DAO ecosystem, and Timvi has simplified the generation of tokens. The design of the coin reduces the threshold for users.

Blockchain-based distributed finance can benefit more groups who cannot use financial services. However, the current mainstream digital currency prices are highly volatile and are not suitable for long-term transaction settlement. Therefore, the stablecoin represented by TMV can serve as a more ideal settlement tool and transaction medium in the financial market, helping to promote HP Finance.