ChargeDeFi - Rebasing Stablecoin Ecosystem

The project is an algorithmic stablecoin ecosystem with rebase mechanics built on Binance Smart Chain, offering investors rewards via numerous staking options.

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BSCNews
on
December 14, 2021
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Insight on ChargeDeFi 

ChargeDeFi is a new project on Binance Smart Chain (BSC), combining an algorithmic stablecoin with rebase mechanics. The ChargeDeFi ecosystem supports three tokens ($Static, $Charge and $Pulse) with different functions, creating an ecosystem with expansion. 

The $Static token is the protocol’s native token pegged to $1.0 BUSD, the $Charge token is used for staking to earn rewards. Finally, the last, known as the $Pulse token, is a bond-type token for implementing traditional bond systems. 

When the BUSD-pegged $Static token is above $1.01, the ChargeDeFi ecosystem expands, minting more $Static. Investors benefit from this expansion when they stake $Charge or $Static-BUSD LP tokens in the boardroom.

On the other hand, if the $Static token falls below $0.8 or less than its stablecoin-pegged value for more than 6 epochs (48 hours), the token rebases. The number of tokens in circulation is reduced until $Static is at $1.0 again during the rebase process. 


$Static, $Pulse, and $Charge Tokens 

$Static Token 

$Static is the transactional value token within the ChargeDeFi ecosystem. The price of $Static is pegged to $1.0 BUSD and has a rebase mechanism. 

$Static Tokenomics  


$Charge Token

$Charge is the ChargeDeFi ecosystem’s main share/seigniorage/governance token. The token allows investors to receive part of the $Static expansion upon every rebase. However, the token is not affected by the rebase mechanism. 

$Charge Tokenomics 


$Pulse Token 

$Pulse tokens mimic traditional bond-type tokens. The only difference is that it has a specific use-case and mechanics. Unlike regular bond systems where bonds are static tokens, $Pulse can be used in a special Pool that yields $BUSD when $Static is below it’s $1.0 peg. This pool automatically redeems $Pulse tokens for $Static when $Static is above $1.01.

$Pulse Tokenomics 

ChargeDeFi Rebase Mechanism

This is by far the protocol’s most important feature. The rebase mechanics executed in the ChargeDeFi smart contracts implement price-elastic tokens that adjust the circulating supply to influence the price of a token. As stated earlier, the mechanism reduces the circulating supply of tokens to increase its value. Below is an explanation of how the mechanism works: 

The BSC-based project utilizes rebase mechanics below a target price.  A rebase mechanism below the target price will always push the token back to the target price. If there is any dip in $Static price leading to a decline below a certain price threshold, the circulating supply of tokens in the ecosystem readjusts. This will affect tokens in wallets, tokens in circulation and also $Static inside LP tokens (like $Static-$BUSD LPs), thus bringing the price of the individual token back to its peg. 

In essence, the rebase mechanism will protect the ChargeDeFi ecosystem from panic selling during a price dip. In addition, the strategy will help sustain the project’s tokenomics. This measure was implemented to prevent the issues that have plagued many traditional algorithmic stablecoins. They often tried taxation below their peg or used a rescue fund that would push a token back up. These measures have always failed in the past. With the rebase mechanism $Static has a sure way to regain peg and create a situation where existing pools, or new investors, can create enough buying pressure for new expansion. 

Other Features of the ChargeDeFi Ecosystem 

The project also has some unique features that contribute to its growth. Such features on top of the rebase mechanism include: 

Boardroom and Expansion 

When $Static is above $1.01, the ChargeDeFi ecosystem expands and mint more $Static. Investors who stake in the boardroom are incentivized through the expansion. There are also several options for investors to stake. These staking options will yield $Static or a combination of $Static and $Charge. Since a few day’s ChargeDeFi has also launched auto-compounding vaults on their site. One vault, the 60/40 vault, creates a staking mechanism that benefits the protocol. All $Static-$BUSD LP’s staked in the vault will be split 60/40 over 2 auto-compounding vaults. 60% is staked into a $Static-$BUSD vault and 40% is staked into a $Charge vault. As the $Charge vault uses the underlying boardroom dynamics the vault locks the stake for 48 hours. After this period a 2 hour window opens where the rewards are compounded and people can unstake. After that period it locks again for 48 hours.

$Pulse Pool 

When $Static falls below $1.0, the expansion stops, and the boardroom will not mint new tokens. Instead, after a short while, the rebase mechanism raises the $Static price back up. When $Static is below peg investors can buy $Pulse and stake them in a special $Pulse pool. 

Below the target price, the $Pulse pool will produce $BUSD. This paul automatically redeems investors’ $Pulse for $Static when $Static is above $1.01. When the ecosystem expands part of the expansion is reserved to pay of this $Pulse reservoir. When all $Pulse are paid off the expansion is shared to boardroom stakers again.

Configurable Ecosystem 

Most of the numbers and percentages in ChargeDef’s token details and pool settings are configurable. The percentages vary with the market situation. This does not mean the project controls the price of the assets. But this system enables us to easily configure new vaults, staking options or use external generators to boost the yields. 

Multichain 

As stated earlier, ChargeDeFi is built on BSC, but the protocol plans to expand to other chains in the future. Bridging rebase tokens into other chains is not possible. But ChargeDeFi will employ other strategies to ensure a deployment into another chain.

Charge Pools and Farms 

Several pools and farms are available on ChargeDeFi, and more are being added as the protocol continues to expand on BSC. ChargeDeFi pools hold part of the yield and use it in reinvestment strategies that increase yield over time. These farms and pools may yield $Static or $Charge tokens. Or a combination of both.

Dollar Swap 

This feature allows investors to swap $Static into $Charge easily. ChargeDeFi introduced this feature to prevent price impact on $Static as it is not sold off but held within the smart contract. During each epoch a limited amount of $Charge is available for this swap.

ChargeDeFi Bond Pools

Bonds can be bought when under target price and staked into a smart bond pool. The ChargeDeFi bond pool yields BUSD when under the target price and auto-redeems part of the bonds when $Static is healthy again. 

ChargeDeFi Passes CertiK Audit 

In a bid to provide a secure platform for investors, ChargeDeFi has completed its external audit with CertiK. The protocol took to Twitter on December 11th to announce the important feat. 

“Make sure to check out @certik_io website to see #ChargeDeFi now listed on their website,” ChargeDeFi tweeted.

Source


Closing Thoughts 

The project seeks to lay the foundation of a sustainable ecosystem on Binance Smart Chain. Furthermore, the rebase mechanism is also seen as a temporary solution towards establishing itself as a top name in the Decentralized Finance Industry (DeFi). Thus, the protocol will expand its use-cases in the future. 

Through honesty and transparency, the ChargeDeFi team aims to become one of the strongest projects on BSC before moving to other chains. 

For more information about ChargeDeFi, check their media pages below: 

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