Based on the paradigm of algorithmic stablecoins, Ceres balances the four characteristics of stability, scalability, capital efficiency, and decentralization. This balance will bring unique innovation advantages and create value for the cryptocurrency industry.

Continuous and stable positive spiral

An algorithm that combines stability, scalability, and capital efficiency will bring about a positive spiral in which the value controlled by the protocol continues to grow, and a positive spiral is very important for algorithmic stablecoins. Relying on the positive spiral, Ceres can reach a certain scale faster and maintain a stable state, thereby promoting ecosystem development. The expansion of stablecoins is complementary to the development of its ecosystem, which ultimately brings the success of algorithmic stablecoins.

Prevent the death spiral

The death spiral is a problem that plagues many algorithmic stablecoins. Specifically, when the market declines or extreme situations are encountered, the price drop of various assets involved in the algorithmic stablecoin interacts with the flight of funds, causing the entire economic system to enter a destructive negative spiral, that is, a death spiral, which leads to an irreversible and devastating blow. Ceres' algorithm has solved this problem, Ceres' innovative central bank-based redemption mechanism can skillfully guide liquidity when the market encounters a fall or extreme situation, and cooperate with stakeholders in the economic system to eliminate speculation. Negative effects on the economic system caused by the panic people. And, because of the PCV mechanism, Ceres has a better control over liquidity, which can stabilize the entire economic system even in extreme situations. Therefore, we can confidently say that Ceres' economic system will not undergo a death spiral.

Create value for liquidity and crypto assets

Ceres introduces cryptocurrency assets and liquidity to become the value support of the economic system through the Reserve Asset Adapt (RAA), which has a double positive meaning. For Ceres, more value support brings better stability and decentralization, so as to gradually achieve the ultimate form of algorithmic stablecoin, that is, a decentralized stablecoin fully supported by crypt assets. For crypto assets introduced into Ceres, Ceres’ central bank creates value for the liquidity and assets of these projects, providing liquidity-based services. In addition, the stablecoins based on crypto assets created by Ceres will better meet the demand for stablecoins in the crypto world than centralized stablecoins. This will greatly facilitate the development of the entire crypto world and make Ceres the stablecoins infrastructure of the industry.