Introduction
Welcome to Excavate Finance, A seignorage protocol that aims to build a sustainable ecosystem around $EUSD, our pegged token and $MINER, our share token.
Excavate Finance is built by a product-based company who specialises in building innovative technology with its members having expertise in everything ranging from deep tech such as state-of-the-arts machine learning and blockchain paradigms to marketing in the toughest of niches to penetrate.
Our team has been analysing various other protocols and we believe that there are inherent flaws with the approach that other protocols use to sustain their system. Our mission is to make Excavate Finance a more sustainable way of building a seignorage protocol with on-chain innovations to make us a stable and predictable investment choice for you. Here's how we plan on delivering that.
Many protocols claim that they are 1:1 pegged with a stable coin yet they tend to be too far above or below peg. Some protocols may think having their pegged coin much above peg is a good thing and even aim for it but we think that's the cause for the downfall of many such protocols.
Having the stable pegged tokens range between price points looks good when it is trending up (example going from $1 to $2). Investors are optimistic and the protocol sees fast growth. But anything that goes up must come down eventually as investors begin to realise that the pegged token is supposed to be only worth $1. A couple of whales typically initiate selloffs, tanking the price of the peg token and causing it to ultimately depeg. Most investors lose money while the few whales benefit, triggering a mini crypto winter effect for the protocol. Almost all investments are out the team, now has to recover. The protocol might survive this ordeal a couple of times but at the end there becomes a point of no recovery leading to the protocol's demise.
Example price chart of an algorithmic stable pegged coin that hit a down trend and went from $1.8 to below $1
Example price chart of an algorithmic stable pegged coin that hit a down trend and went from $2.3 to below $1
Our pegged coin $EUSD will always be as close to $1 as possible. This is made possible through our state-of-the-art price stability peg bot that uses bleeding edge AI to always make sure that $EUSD remains as close to $1 as technically possible. That does not mean however, that we are immune to price movement. There will be moments where we trend up or down but our aim is to keep the movement to a small range (Range from 1.01 to 0.99) in order to maintain peg infinitely.
Protocol owners are generally excited when a whale invests in their protocol and encourage it as they usually help start an uptrend in the price of either the share token or pegged token. But whales tend to be smart (Which is likely why they became a whale in the first place) and don't care about the growth of a protocol. This results in them manipulating the price, using their massive holdings to farm coins and later dumping and causing massive downtrends, often amplified by investors' fear of possibly "losing it all". The failure of most projects can be traced back to bad actors with large holdings, or whales, making it so that even the treasury funds are insufficient to keep the project alive (A couple of whale's holdings are usually greater than everyone else's stash combined). This puts the project's fate in the whims of a handful of whales.
Our solution is to eradicate whales! We plan on doing this through our innovative reputation system that has never been implemented in a seignorage protocol before. The reputation system works in sync with our stability peg AI and allocates a per wallet limit based on the strength of the stability peg AI. The wallet limit dictates how many $MINER, and LP tokens can be staked in the boardroom and the farms per wallet. This results in decentralisation, making huge simultaneous selloffs statistically unlikely. This ultimately makes the job of the stability peg AI trivial since it's easy to defend the peg from multiple small wallets than a whale.
Head to your current favourite tomb-fork's discord general chat. Chances are you'll see that projects believers / moderators keep reminding people to not take profits on the pegged token that's emitted from the boardroom to help sustain the peg. This is counterintuitive to most people who only care about individually making more. This is especially true during the downtrend for a pegged coin where it doesn't make sense for an investor to hold onto or LP the pegged coin because it could likely be worth less tomorrow than it is today. Everybody thinks the same way causing it to damage the project as a whole. This is the second biggest cause for a stable coin pegged seignorage protocol to fall. Most investors don't think long term about the project, they only think about themselves in the present and no other projects can do a thing to change it other than to plead.
The solution is not to hope that the other investors will do the right thing but rather have on chain mechanisms to penalise the bad actors and incentivise the good actors.
This is where our reputation system comes in. The reputation system is rule based and automatically increases the wallet limit for good actors and decreases the wallet limit for bad actors. Everybody starts with a small wallet limit and over time build up their reputation on chain and get the ability to invest more and more in. Performing actions that can hurt the protocol will heavily penalize a person's reputation score, causing a person to debate weather doing a bad action is worth giving up the ability to get more exposure in the protocol. This weeds out all bad actors and attracts more and more good actors into the system.
This also automatically wires new investors to do the right thing for the protocol to grow as their personal interest now aligns with the community's interest.
We believe that protecting your principle investment is our utmost priority. Most other protocols allow a disaster to happen and later go "uh-oh" in a discord announcement. They try to reassure investors that things will be alright, that it is normal and that they are looking into it. You'll often see such messages accompanied by something along the lines of "We're still a strong community!". Our founder, Tim, a global leader in technology, calls such a routine reactive disaster management. It's when companies start reacting after a disaster takes place and try to fix it.
No fortune 100 company runs this way, reacting to a disaster puts a huge risk on the sustainability of a company, They are proactive not reactive. Disasters are not sudden and can always be anticipated. They always have subtle indicators when they are internal and can be simulated when external. Simulating and listening for these indicators proactively and evading them is what keeps a company afloat and sustain for decades.~ Tim, Founder of Excavate Finance
We at Excavate Finance practice what we call proactive disaster management. We understand that investors trust us with their hard earned capital and we intend to protect it at all costs. We do this by not only having devs and marketers, like most projects do, but also having financial analysts, economists and policy makers who will run Excavate Finance like they are running a country's financial system.
We're here to stay and have plans on building a complete ecosystem with Excavate Finance at its heart. We plan on launching games, launchpads, DEXs and many more to derive good utility and build a thriving ecosystem within the BSC network.
We're building an ecosystem with brilliant minds by solving problems caused by most seignorage protocols. We're radicalising the very essence of seignorage protocols by our a peg stabilizer AI, comprehensive reputation system and a team of experts who will foresee disasters well ahead of time and mitigate them.
Last modified 6mo ago