Comment on page
Civilization is based on stablecoins pegged to national currencies and special drawing rights (SDR): the US dollar, the euro, and others.
The $CVL token provides stablecoins and absorbs the volatility of their prices. The issuance limit is 7,933,993,600. $CVL is also a governance token, which allows its holders to vote on community proposals.
The exchange between the Civilization stablecoins takes place with a single commission of 0.01% and does not require payment of the Tobin tax.
$CVL is an intermediate link in the exchange of stablecoins for other cryptocurrencies what affects the volume. The rate of stablecoins to the main $CVL token is determined by algorithms.
The issuer of stablecoins is the DAO. Stablecoins have an unlimited number and can be issued additionally if necessary and upon successful community voting. At the same time, when withdrawing from circulation, they may or may not be burned. This is also decided by a community vote. But the main token of the $CVL ecosystem is not subject to additional emission, but at the same time it can be burned. Which indicates a decrease in its emissions in the long term.
Changes in demand for stablecoins can lead to an increase or decrease in their value. A feature of the platform is the market mechanism for maintaining the prices of stablecoins through arbitrage operations.
The Swap civilization allows you to exchange stablecoins for a $CVL token at the rate of the corresponding fiat currency. Arbitrageurs profit from the difference in exchange rates, which leads to price equalization.
Let's look at the example of a stablecoin pegged to the dollar USDW:
An increase in demand for USDW can lead to an increase in its price above $1 on decentralized exchanges. In such cases, market regulation of the USDW value is carried out in two stages:
Arbitrageurs buy USDW on a Civilization Swap where the rate comes from the real world and is always equal to $1. Users spend $1 in $CVL to purchase one USDW. The proceeds from the sale of USDW go to the treasury, thereby replenishing the treasury and increasing the provision of the ecosystem. Then they exchange stablecoins for $CVL at a market price exceeding $1 and make a profit. Arbitrageurs repeat these operations cyclically. The supply of USDW increases, which leads to a fall in value to the target value.
When the market is flooded with USDW sell orders, supply often exceeds demand. This may cause the price of USDW to fall below $1. Then the arbitrageurs buy USDW cheaper and sell it on the Civilization Swap where the rate is always $1 or burn the token if the collateral on the Civilization Swap is not sufficient. When burning the $CVL token, they receive a proportional share of assets in the treasury (collateral), after which they repeat the operations until the USDW exchange rate stabilizes. In this way they restore the balance between supply and demand.
High arbitrage profit is the motivation that supports the value of stablecoins. And the provision of the treasury allows you to provide all the emissions in the ecosystem of Civilization.
Commissions from all transactions are sent to the DAO treasury. Civilization Swap fees are delivered in $CVL tokens and then sent to the DAO treasury. The replenishment of the treasury occurs due to the business model and does not require burning or additional release of any tokens. The security of the main $CVL token is constantly increasing and its value is growing with the growth of the treasury issue. This model is unique and guaranteed safe.
$CVL token price = DAO AUM / $CVL Total Supply
DAO AUM is the Treasury issue
$CVL token Total Supply is the total amount of $CVL token in circulation.
But that's not all. The Civilization protocol has the ability to set rates on its exchange through DAO voting, and if necessary, protocol fees can be increased, for example, to 1% or even higher - System security comes first and any ecosystem holder will support this decision. In fact, at the end we get an ecosystem of algorithmic stablecoins and low-volatility tokenized assets, which are guaranteed to be safe and resistant to current realities. And most importantly, they solve the main tasks of today's world economy - you can freely transfer and store money, cheaply, safely and without any restrictions or sanctions.
The balance and equilibrium of the system occurs due to Arbitration mechanisms. For the convenience of users, we create automated mechanisms where everyone can earn money simply by connecting to our system. For connection, you need to hold the CVL token, which gives it additional importance and usefulness.
We want to take on the role of product developers in the ecosystem and are ready to bear the guarantees of the quality of our products. That is why we create products, all of them will work on the principles of P2P - these are products for people, and a person is a key figure in our ecosystem. Not government, not central banks, not sanctions.
All our released products will be created for people and will be free, and most importantly, these products will have their own payment system and tokens of our ecosystem, which will guarantee stability. Cryptocurrency exchange, P2P cryptocurrency marketplace, educational and commodity marketplace, wallet app and much more in the future, we will not stop there.
We also work with local providers from different countries in order to be able to buy and sell stablecoins of our ecosystem without any problems, thanks to P2P we plan to close all these needs, because this is a huge market all over the world today. To date, we are already closing a number of regions, such as the EU, Latin America, India, the countries of the Asian region, the entire CIS region and others. This means that users will be able to make transfers and use money (both fiat and cryptocurrencies) in all these regions without any problems.