Idea behind Bomber.cash

Bomber.cash is fork of earlier released product Stand.cash, but with several crucial improvements.

Contracts are forked from original Stand.cash github, and is available for verification on our Github as well.

Major changes:

  • No fees for LP providers, as crucial part of ecosystem
  • Reduced farming fee on farming pools (from 9% to 3%)
  • Stand.cash had 4% minted for treasury and 5% team fund, while Bomber.cash has none of those.
  • DAO implementation

Short-term roadmap:

Q1 2021:

  • Genesis Farming
  • Marketing launch for mainstream awareness
  • Farming initiatives with other exchanges (SushiSwap, Alpha Homora)
  • Introducing and implementing DAO

Q2 2021:

  • CEX listing
  • Long-term roadmap release

Links:

(LINKS)

Stablecoins are not new but currently, there is a huge demand for them, and numerous projects have taken advantage of this to create what they feel would satisfy this need. Different designs and models have been utilized, such as the Asset-based, Crypto-collateral-based, and Algorithmic models. Irrespective of the design, the primary goal is the same, and that is to create a digital currency with an existing fiat peg (such as the USD), thereby significantly improving its adoption as a means of payment. Bomb.Cash is an Algorithmic protocol, and like other Algo protocols, it relies on rules written in its software code to match currency demand and market supply. However, it is unique in the way it anchors its stablecoin to the value of the USD.

Taxonomy Of The Main Stablecoin Types

Why are Stablecoins in demand? What are the use cases?

Different parties utilize stablecoins in different ways, for different purpose. Some of these applications are:

  1. As a means of exchange- This is the primary purpose of stablecoins and it is central to cryptocurrency adoption, as it solves the issue of volatility.
  2. As a Unit of account- Since stablecoins are pegged to fiat, pricing can be done in stablecoins, and overtime, they could become a recognizable unit of account globally.
  3. Store of Value- Since they are not volatile, stablecoins are fast becoming a popular store of value. They are likely to become even more popular for this reason, considering the negative interest that could be accrued to bank depositors.
  4. Remittances- Cryptocurrencies have been hailed as a fast and cheap means of remitting funds, with the major downside to their use being their volatility. Efficient stablecoins solve this problem.
  5. Lending and derivatives- Stablecoins allow you to hedge against the risk of volatility and nullify the need for centralized players existing on the CME and CBOE
  6. Decentralized applications(dApps)- For businesses that run on smart contracts, stablecoins ensure that operation costs are predictable and infrastructure management is easier.
  7. Performance management- By removing volatility, stablecoins make it possible for analysts to accurately evaluate and compare projects.

The foundation for an efficient stablecoin

The key success of Stablecoin

As stated earlier, there are several projects that are focused on stable coins but the key question is-How many of these protocols can form a consensus as well as support around 1USD to allow for sustainable staking? In other words, how many of these coins are truly stable? The fact is that most are not. The quest to create a stablecoin that is true to its name led the Bomb Cash team to think outside of the box and come up with a protocol that is driven by a simple but reliable system called the Reserve Asset Mechanism. This is a significant improvement from existing protocols and
promises to transform the approach to stablecoins. The team is very proud to be pioneering this, and our contributors should consider that we are on the verge of something big.

Some of the hallmarks of this revolutionary protocol are:

  • Two Primary Tokens - The protocol comprises two tokens, BOC (Bomber Cash), which is the stablecoin that is pegged at 1USD, and BOS (Bomber Share), which is the non- stable governance token that will accrue fees, seigniorage revenue, and excess reserve value.
  • The Reserve Asset Mechanism - Whilst there are numerous stablecoins, stabilization through the Reserve Asset Mechanism is still novel, and this is at the heart of what we are building. It is a simple model that works thus: If BOC is trading above 1USD, it uses 10% of the rebase to purchase Eth, which it keeps in the treasury. Conversely, if BOC is trading under 1USD, it supports the price using the treasury fund.
  • Decentralized and Governance-minimized - The community is completely responsible for governance, as the protocol employs a highly autonomous, algorithmic model that is devoid of active management. Tokens are not pre-allocated to any member of the team or external investor, rather, they are used to incentivize members of the community that perform valuable actions on the protocol. Token distribution is fair and transparent, and has been designed in such a way that ensures the long-term success of the protocol.
  • Fully on-chain oracles- Use of Uniswap (USDT, USDC time-average prices)
  • Swap-based monetary policy- Use of automated market makers like Uniswap to create swap-based price discovery and real-time stabilization incentives through arbitrage.

Introduction of BOC improvement (Reserve Asset Mechanism)

It is true that the simplest explanations are usually the best, and that is a good way to look at the Reserve Asset Mechanism. It is structured like a conditioned reflex, such that when the price of BOC is above 1USD, the protocol purchases Eth using 10% of the rebase and stores it in the treasury, and when BOC is below 1USD, the treasury fund is used stabilize the coin at 1USD again. It is a very simple model as stated earlier but its effectiveness is not in question.

Reserve assets will repurchase BOC appropriately when the BOC price is lower than $1. If the price can be returned to more than $1 every time, it will help form a very solid price support and will continue to strengthen the price consensus between investment institutions and the community , also increasing confidence.

The protocol will maintain a 24-hour time base which will weigh the average of the BOC-USD exchange rates as is read from the Uniswap v2 contract and internalize the information for reference by the stabilizing engine. On the one hand, when the market price of BOC is above 1USD, arbitragers have the opportunity to sell BOC and buy back when the price returns to 1USD; on the other hand, when price is below 1USD, they can buy BOC and sell when price goes back to 1USD.

The stabilizing engine is signaled anytime the price of BOC is noticed to be above/below (1+ɛ) USDT where ɛ is the determinant of stability.

Why BOC reserve assets mechanism is so important and why BOC will succeed

The simplicity of this model makes it very sustainable and presents a good opportunity for arbitrage. Also, unlike YAM tokens whose high price makes maintenance via treasury assets impossible, the Bomber Cash model requires very little reserve assets for sustenance. Therefore, it can run itself independent of the whales. Furthermore, the purchased reserve assets will continue to appreciate and when the market value surpasses that of BOC, it could form a decentralized central bank, as it has become a 1:1 acceptance project. Therefore, the opportunities are enormous.

(FOLLOW US — LINKS AND CONTRACT ADDRESSES)