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Snider

We have decided to rework our roadmap, Pushing back Offshore Storage Mainnet release to Q1 2019.

Updated Roadmap:

1*UL2Wd5ZZYWO6ks_s24MxtA.png

Explanation:

Security

Despite the fact that we are excited to bring Offshore Storage into the world; we aren’t going to release a version we are not happy with. At this stage, we have a lot more security testing that we want to be able to carry out. Ideally with source code released to the public.

We have a lot of people trying to take advantage of Haven’s success and also target us for their own enjoyment/benefit. We are looking for outside developers with experience to provide a fresh perspective to help us with testing and ideally improvements with the Offshore Storage code. Finding developers we can trust is a priority for us, although difficult.

XUSD + Exchanges

We are wanting to extend the platforms that Haven for decentralization of data for the price oracle. We also are working through the application process for the addition of our XUSD Stable coin to exchanges which would be ideal to have available at mainnet launch.

Added Roadmap Items:

Before the release of Offshore Storage we want to have incorporated Bulletproofs/Hardware wallet support. Completing this major upgrade to our network is now our focus for the rest of Q4. In addition, because of some active hostilities towards us and our network a Code Review was added to the Roadmap. A crucial addition but very difficult to execute.

Mining Centralization

We have designed the Offshore Storage price oracle to not be influenced by the wider network and thus will reject any attempted blocks with an incorrect price. However, we need to be as vigilant as possible as mining centralization on our network is a point weakness and with Offshore Storage release the potential gains of a network breach could be extremely high and would completely devastate our network.

Miner.Rocks is a solid pool, and the person who runs it has proven to be trustworthy. But they have had 50–90% of the network hash for we don’t know who they are, and their pool may well be hacked.

We don’t want to release our mainnet with the mining centralization issue prevalent. We will consider extreme measures to penalize miners using the centralized pool and incentivize switching.

Please switch your rigs to any of the following:

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Snider

Today is the day! Public Testnet release download link and information to follow.

1*S64ZWMy1x5b9ldqKHNFNFg.png

If you participated in any other tests:

Make sure you remove any old test blockchain and wallet files to avoid any local conflicts:

e.g: C:\ProgramData\haventest

and: C:\Users\{username}\Documents\havenoffshore

Download Link:

https://drive.google.com/file/d/1l0nVFpLAGUd0TA5lyoFM-1nT2XztmVDC/view?usp=sharing

Explorer: http://167.99.93.242/

Key features to test:

  • Send XHV
  • Receive XHV
  • Send XUSD
  • Receive XUSD
  • Offshore XHV -> XUSD
  • Onshore XUSD -> XHV
  • Send Offshore XHV -> XUSD (to another address)
  • Send Onshore XUSD -> XHV (to another address)

Mining/Receiving Test funds.

Request test funds from the discord channel #publictestnet or post your hvxtest address in a suitable thread.

You cannot send funds from the live network — this is a completely incompatable network specific for the test.

Solo Mining: Alternatively solo mine using cpu power to get your funds to play with and distribute to others. You must run a Haven Oracle to mine. As usual type: start_mining [address] to start mining.

Bugs & Feedback.

Report bugs in the #publictestnetbugreport channel on Discord.

We have lots of UI plans already this test it to primarily test the Haven Protocol core, not UI. However if you do have a suggestion feel free to leave it in the #publictestnetfeedback channel on Discord.

We are working on implementing UI changes/Multi-currencies such as the design concepts we have shown.

XGOLD is by far the most popular stablecoin request by the @HavenProtocol community. It will be added to the network in Q1 2019.

 — @HavenProtocol

Sneak peak #2 into the future of @HavenProtocol: What feature do you want added to the 2019 roadmap?

 — @HavenProtocol

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Snider

Important announcement for the future of Offshore Storage!

Offshore Storage will be available based in other Currencies:

We have teased and previewed this in tweets of our vision for the future mobile app redesign:

Sneak peak #2 into the future of @HavenProtocol: What feature do you want added to the 2019 roadmap?

 — @HavenProtocol

Concept

The concept for multi-currencies has been in place from very early on in development. Although storage of funds is a major component to Offshore Storage, the use case as a day to day payment platform is very clear. Using Offshore Storage, any user can effectively create cryptographically untraceable fiat to store and transfer worldwide.

In order for Haven Protocol to rival all traditional stable options for a storage or payment platform i.e. onshore and offshore Banks, PayPal, Visa etc on a worldwide scale, support for multiple currencies is imperative.

Release time

At this time we are planning to initially release Offshore Storage with Haven Dollars exclusively. The Multi-currencies implementation will be a future hard fork.

Ticker Change

0*melNw3smPFR0ZX_i.png

The reason for the change is to provide clarity and consistency for all future offshore currencies. Any existing currency ticker can be used simply with adding an ‘X’.

When considering how to identify offshore USD from CAD, AUD, NZD we would have inconsistent formats with our previous ticker format. (XHVD vs XHVCAD) All issues are solved with the addition of a leading ‘X’.

Although from a technical perspective this change isn’t an issue, maintaining consistency from a marketing and discussion perspective is important to avoid confusion.

All other documentation referencing XHVD will be updated to reflect the new XUSD format.

What Currencies are we going to support?

So far we have previewed the following:

1*6DDv0mTJ0gmCgqmooow3gQ.png

More currencies will be announced in the future! If adding a new currency helps bring more users to the Haven Protocol platform, we will work to do so.

This is very exciting from a cryptocurrency adoption perspective for merchants. They will be able to accept Offshore Storage funds and store funds in their respective countries currency. Price stability and privacy are the only hurdles to crypto adoption — and Haven solves both.

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Round 2 of private testing has gone swiftly — Time for the Haven Protocol Public Testnet

Initially our aim was October for the Public Testnet. However the most significant piece of feedback the team have given us is to ensure that a decentralized oracle is to be included in the Public Test. In previous tests we were just focusing on the offshore storage specific code.

The main reason for this is to avoid the perception that the mainnet oracle will function the same way. As the decentralized oracle wasn’t ready, we have had to work on it which wasn’t the initial plan for this test.

We don’t want to have to make everyone wait more than we need to and are going to push out the estimated release time to mid November.

Haven Decentralized Oracle:

What is the Haven Oracle?

For those who don’t know, an oracle is how a blockchain interacts with the wider internet i.e. an API. The Haven Oracle is what is used to determine the current price of Haven so we know the USD value of any Offshore (XHV -> XUSD) and Onshore (XUSD -> XHV) transaction.

Design

Who runs nodes?

Anyone can run their daemon as a validator and run the open source oracle code locally. As new blocks are detected, your daemon references the reported price in the new block and compares it to the prices you have determined independently.

Everyone is encouraged to run a remote node but all exchanges, pools, remote nodes and seed nodes will be required to run an oracle node.

Oracle nodes can be run independently from the Haven daemon. Anyone not running a validator node will accept the chain with the most work as usual.

How is the price determined?

The price is determined based on a weighted average and will be calculated over all exchange values, primarily based on volume, and normalized over previous 20 previous prices. Each oracle reaches out to the exchange APIs and gets the recent market history.

This will disincentivize someone attempting to manipulate mint and burn for profit through pushing up the price/dumping the price. To have any significant impact they would need to maintain the value over all exchanges for over 20 blocks (40 minutes). The cost of doing this would far out weigh any rewards.

FAQ: What would would happen in a 51% attack situation? Couldn’t they force everyone to accept a tampered price?

No. If the price in the block doesn’t match what is expected by your oracle, even if it is the longest chain with the most work, it will be rejected.

Your oracles reported price isn’t determined based on what the majority of oracles report; they don’t reference each other in any way.

There seems to be some misconceptions around how a 51% attack works. You can’t rewrite any consensus rules — otherwise all 51% attacks would involve minting billions of coins. A 51% attack can only force a roll back if their chain is the longest with the most PoW. An attack would work like this: An attacker would start mining with over 50% of the nethash and not expose the chain to the wider network.

The attacker sends all their coins to an exchange. After the deposit has enough confirmations, they sell and withdraw the btc. Once the btc is in their wallet; they expose their chain to the wider network. As that chain has the most work, it will become the “correct” chain and all nodes will roll back and sync with it. On the hacked chain, the attacker never sent their coin the the exchange address and will still have the coins in their wallet. The exchange loses out in this scenario.

If someone was to input a fake prices, all other nodes would reject the transaction as this price wouldn’t match what their trusted oracle data reports. They would have created a chain split and all validator nodes will eventually stop attempting to sync with the incorrect chain and ban them.

Most significantly all exchanges will stay on the original chain and any transactions attempting to send hacked coins to the exchange will be doing so on a completely different chain and never reach them.

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Why Haven Protocol’s [XHV] Offshore Storage is the best crypto stable coin storage solution.

1*mXPPmQTs0YIz0qwmoxcvdQ.png

Offshore Storage allows users to preserve the value of their coins, without compromising on security, privacy, and decentralization unlike other stable coins. Offshore Storage allows for anyone to be able to effectively open a USD based bank account without a central bank and transact funds away from the prying eyes of government.

Offshore Storage: (Mint and Burn)

The underlying coin is decentralized and the collateral efficiency is at a maximum (burning $100 worth gives you $100 worth). It’s also secure in a crash as no matter the price, the method of minting and burning works without discrimination. Any issues with liquidity can be circumvented with a USD base trading pair too.

Offshore Storage functions exclusively with a Privacy coin. The ’mint and burn’ lets the money supply fluctuate freely. The velocity of money is cryptographically unfeasible to determine as the blockchain does not reveal the amount transferred nor the wallet addresses they are transferred to. This means the currency is unable to be valued based on total supply.

Offshore Storage Secure to crashes Decentralized Collateral-efficient #xhv #haven #havenprotocol

 — @HavenProtocol

Other Stablecoin types:

The problem with existing solutions is that they tend to fall into a few main problematic categories:

Fiat-collateralized — e.g. Tether.
The fundamental issue with this method is that it is centralized and requires a large amount of trust in the company that is holding the fiat. It is not a long term solution and is counter-intuitive to exactly what crypto is trying to solve.

Crypto-collateralized — Backing a stablecoin with Ethereum/another Crypto. It’s Decentralized but as the backing isn’t stable either, a big enough price drop could exceed the amount of collateral and force you to liquidate. Not immune to crashes

Non-collateralized — Functions like a central bank by controlling the money supply of coins in order to move the price towards $1. This is a step in the right direction but still falls short. If the current price is $1.50, more coins are created and sold into the market to lower the price. If the current price drops to $0.50, coins can’t simply be burned so the central entity has to buy up coins in the market until the price hits $1.

Attempts to circumvent this by selling contracts to users to temporarily fund shortfalls and pay them back once the price goes up… Overall not very decentralized and not immune to a major crash.

Haven Protocol uses Offshore Storage to produce the best Stablecoin from a security of value and decentralized perspective in addition to being completely private.

Common Questions regarding Offshore Storage:

What if XHV’s price drops; resulting in minting more XHV thus causing inflation and further lowing the price. Couldn’t this turn into a massive inflation spiral?

This is a common question, which is understandable. Specifically with this example — there are a few assumptions you’d have to make to infer an inflation spiral. In order to get XHVD in the first place, you’d have to burn XHV, thus lowering supply (deflation).

To a certain point this is balanced out by reminting XHV (inflation). Although, because of offshore storage, the value of the coin isn’t directly derived by the supply, as its unknowable. Also, if you consider the users utilizing Offshore Storage, for the purpose of safe storage, are they going to mint back coins when the price lowers? What would be their reasoning for doing so? Minting and burning will be happening all the time no matter the price and doesn’t have to have any interaction with XHV trading on Exchanges.

What if there isn’t enough liquidity to cover selling your minted coins at the determined valuation price — as selling would lower the price?

A XHVD/USD Base pair would totally solve this. Haven’s long term plan is to have XHVD/USD pairs on exchanges.

Even without, the solution is simple — Smart users wont mint and sell their XHV in a downward trend, users have a large disincentive to do so as they could get more in an upward trend. Users also don’t have to sell all of their Offshore Storage at once. They are free to mint back smaller amounts and sell them for the value they were minted at.

Long term, Haven Protocol’s vision is to have the usability of a standard online bank app or PayPal/Venmo with complete anonymity. With adoption, users won’t have the same requirement to mint back XHV from their XHVD as they can utilize and transfer XHVD just like USD.

Could someone manipulate the price of XHV in order to lower it to burn a lot of XHV coins for more XHVD — then pump up the price and mint back more XHV than they started with?

This would be an extremely expensive exercise. In order to profit, you would need a large amount of funds — to the point where the cost of manipulating Offshore Storage in this way is not significantly different to the cost of manipulating any market.

Fundamentally this sort of manipulation would work like this:

  • Purchase xXHV
  • Offshore bXHV -> mXHVD = bXHV *CurrentPrice
  • Sell sXHV (to lower the price to Original price/f — e.g.1/2 the current price and maintain for 20 blocks)
  • Onshore mXHVD -> oXHV = mXHVD /(CurrentPrice/f)
  • Buy pXHV (in order to raise the price — e.g. back to the Original Price and maintain for 20 blocks)

If p + o > x a profit is realized.

In order to determine if this is profitable, you have to determine or make a lot of assumptions and derive values for f, s and p.

x=b+s+p

You could make the assumption that it costs the same amount of XHV to lower the price as it does to raise it back up. Bear in mind that the cost of this is difficult to determine, as a manipulator would need to maintain the price at the low value for 20 blocks and at the high price again for 20 blocks — a total of 80 minutes over every exchange as the algorithm that determines the XHV/XHVD exchange rate used a weighted average.

The more you sell, the more it costs you, as you would be selling your XHV for up to 1/f of what it is worth.

x = b+2p
p+o > b+2p
o > b +p

We also have discussed this and other game theories at length in the discord channel. MyCryptoNinja has put together a trello board and has included some screenshots of discussions that have taken place: https://trello.com/c/fdCroy1g/4-game-theories

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Round 1 of Testing has been completed!

Big thanks to our community testers for assisting us with testing and providing us with a lot of very useful feedback! Some testers were quick to show the wider community what we have been working so hard on:

Taking a test trip offshore. $XHV $XHVD @HavenProtocol

 — @notsofast

XHV Testnet Preview, good job guys, keep it up @HavenProtocol @donjordev @haven_dev $xhv https://t.co/jSMPik0B08

 — @vacs03

Our community was instructed to test the following functionallity:

  • Send XHV
  • Receive XHV
  • Send XHVD
  • Receive XHVD
  • Offshore XHV -> XHVD
  • Onshore XHVD -> XHV
  • Send Offshore XHV -> XHVD (to another address)
  • Send Onshore XHVD -> XHV (to another address)

Also, they gave feedback on the process itself. A very positive result, although can always be improved. Very exciting to be able to see the offshore storage process working.

We did discover some visual bugs during testing which we are working on fixing for testing round 2. We have been heavily working on the actual functions rather than the wallet.

Wallet Design

We are very fortunate to have JuanTwo in the Haven Community. He has been working extremely hard to put together new design for the Haven Protocol wallet:

Haven Protocol | Zeplin Scene

As Donjor and Havendev are both programmers first, having a designers eye is extremely important when creating UIs.

We have had more awesome responses from the community regarding the design which we are incorporating as much as we can into our future wallet.

Testnet Round 2:

We expect to start the 2nd round of testing this month. We are going to open up the testing to slightly more people. At this stage we need to be able to talk with everyone on a individual basis and slowly start to add more functionality.

We are going to have a public block explorer during the next testing phase so the entire community will be able to see the functioning chain at work.

What are we testing:

Similar to Round 1, we are wanting to test the basic sending, receiving and conversion functions and bug test the issues identified in the first round, notably:

  • Confusing fee and returned change values in transaction history.
  • Wallet transaction history visual bug (balances correct).
  • Delay when entering values in offshore fields.
  • No unmixable outputs to sweep error (due to new offshore transactions).

We also want to test out the block explorer and our UI changes. Once again, this will be a closed release with ~ 20 extra community members added.

Round 2 Release date:

Our aim for the release is September. Stay tuned for further updates from the Haven Protocol team!

Haven Protocol Community Alpha:

The Testnet for everyone!

After we are confident with the results of Round 2, we want to release a version for our wider community to interact with as soon as possible. This will be able to be downloaded by everyone!

Our aim for this release is October.

Testnet Future Goals/Tests

  • Simulated exchange prices.
  • Local node users daemon and gpu mining
  • Offshore Storage Game theory testing.
  • Local Haven Oracle node testing.

Glitch in the matrix?

An amusing TradeOrge glitch reported Haven’s price to be 7.6 BTC for a short time before being rectified.

I almost became a billionaire overnight $xhv

 — @PandaTaiwanese

iOS Update

We have an iOS version available, we just need to sort out publishing and closed testing with Apple. Unfortunately this is a bit difficult without being a registered company or exposing personal information. Working on a solution with our legal team!

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Snider

Unfortunately, Nanex was targeted by malicious user and thus 311,000 XHV was stolen from our community/Nanex customers. This attack only effects those who had coins in Nanex and has no impact on the wider network.

How did this attack occur?

The attacker used a well known and identified exploit introduced by upstream Monero code, that was already patched by us on July 7th 2018 in our 3.0.1 release. Because Nanex was still using the old version 3.0.0 wallet, this exploit was able to be used which allows a user to trick the exchange wallet into reporting more XHV received than was originally sent. More info here.

Due to the nature of the issue, as this was big news at the time, exchanges took Monero and Monero based coins wallets offline as soon as the news came out. We didn’t reach out to any exchanges directly about this problem as they were aware and updated.

0*qz9pGrVel0NoS4Xx.pngMany of our community members were specifically requesting TradeOrge wallet status.

Nanex was not aware of this exploit or our update, which is extremely unfortunate and certainly to the surprise of the Haven Protocol team. We were not aware that Nanex keeps their code up to date based on direct message updates from development teams, or that there was a requirement for us to do so. Especially due to widespread news and knowledge of this bug.

Best case scenario:

Talking with Nanex, the attacker has appeared to use a personal email and residential ISP. I have great confidence that under the extreme legal ramifications the hacker will be facing, we should see a return of the lost funds.

PSA:

Do not leave any coins on any exchange. An important rule that is continually ignored in the Crypto community. In saying that, the Haven Protocol team does feel sympathy for those who risk or may end up losing coins. This is a major blow to our community.

It’s very disheartening to know that we have fixed an issue, just for it to be exploited anyway. The Haven Protocol team will from now on always reach out directly to exchanges about any update irrespective of our requirement to do so and the amount of knowledge on the issue. We regret the damage caused by this event and will not let something as trivial as a mis-communication cause something like this again.

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I teased this article on twitter a little while ago. It’s time to deliver:

Breakthrough after breakthrough with Offshore Storage! Our approach has changed significantly since release. Going to release a "Vision for Offshore Storage" article soon! @HavenProtocol $XHV

 — @donjordev

Offshore Storage — A recap

For those who don’t yet know what Offshore Storage is all about, Offshore Storage is the basis of Haven Protocol. Haven’s Offshore Storage Protocol overcomes the biggest issue facing cryptocurrencies; market instability. Offshore Storage allows users to preserve the value of their coins, using Haven’s own ‘Mint and Burn’ concept, without the issues that plague current stable coins.

Our Vision for Offshore Storage

“Our vision and plan for Offshore Storage is far grander than anyone knows or has completely realised.”

Time to forget about native contracts. Start thinking about two coins on the Haven Protocol blockchain. Haven [XHV] and USD Haven [XHVD]. Our vision is a decentralised, crypto-backed version of Tether.

When you burn [XHV] you are converting [XHV] coins to [XHVD] coins, which represents ‘$USD worth of Haven’. Minting is converting these coins back into [XHV]. Just like Haven, [XHVD] coins are divisible and transferable. They inherit Haven’s privacy aspect with the added benefit of having a stable value.

Since the value of [XHVD] is guaranteed with Offshore Storage, there isn’t a difference between sending $10 [XHVD] ($10 USD worth of Haven) and sending $10 fiat. Other than the added privacy, that is.

Having [XHVD] in your Haven Wallet is akin to having USD in your Paypal/Venmo account with all the benefits of Haven Protocol — completely decentralised, low fees and private.

To expand on the [XHVD] Wallet concept, it gives the world access to a decentralised and free USD based ‘bank account’, away from prying eyes and centralised corporations. We envision Haven Wallets solely with a [XHVD] base, where the backing from Haven Protocol is obscured from the end user.

As adoption of cryptocurrencies increase, the market will favour a stable, private coin that does not expose the finances of corporate or private interests.

The problem with non-privacy coins is that they expose everyone’s account balances. Bank balances aren’t public information for a reason. No one really wants to expose their bank balance, regardless of how much or little they have.

I’ve personally talked to New Zealand based retailers about accepting Cryptocurrencies. Price stability and privacy are the only hurdles to their adoption — and Haven solves both.

Further thoughts:

Thinking about the minting process, why mint back coins? With widespread adoption, you would never need to. Prior to that it would be in order to get the $USD value i.e. [XHVD] -> [XHV] -> [BTC] -> stablecoin -> $USD. Although it is essential that this process works, if exchanges started using [XHVD] as a base pair for $USD fiat, you have a work around to minting coins in the first place, i.e. [XHVD] -> $USD. I suspect that with [XHVD]/$USD trading adoption, the amount of coins minted back into Haven reduces significantly and thus lowers the supply.

Oracle:

For those who don’t know, an oracle is how a blockchain interacts with the wider internet i.e. an API. We will need to call an API in order to retrieve the current price of Haven. The current plan is that we are going to build this into the protocol itself. We will have strict rules in place to ensure that any tampering must be a cost of breaking said rules and thus everyone’s daemons will reject the invalid result.

Technical Information:

We are planning to release technical information about how the Offshore and oracle processes will work. This will be in combination with the Q3 release of the Offshore test net.

Contact us on twitter:

Official: https://twitter.com/HavenProtocol

Author: https://twitter.com/donjordev

Other links

Discord (most active): https://discord.gg/vWQ2GZX

Haven website: https://havenprotocol.com/
Whitepaper: https://havenprotocol.com/static/media/haven_protocol_whitepaper.61e75a42.pdf
Explorer: https://explorer.havenprotocol.com/
Telegram: https://t.me/joinchat/HiBY_0WaUTuXMYjQEPUkTA

More information on the history here:

https://medium.com/@havencurrency/haven-914d76aef74f

https://medium.com/@havencurrency/the-solution-to-stable-value-crypto-de8397424c3c

Q&A’s:

Catoshi: https://medium.com/@hicryptocat/an-interview-with-the-haven-development-team-f95540ce5969

Kruger: https://medium.com/mr-kr%C3%BCgers-world-of-crypto/q-a-with-the-haven-protocol-xhv-team-8994349ecfdd

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Achieving a stable value cryptocurrency has long been the goal of many projects that aim to take crypto a step beyond just a medium of exchange and into the realm of a store of value. If I put $1000 into Bitcoin today, I can’t be guaranteed what it will be worth tomorrow which puts off businesses and everyday users that want to use crypto beyond just a speculative investment as a method to accept payments or pay salaries.

There are three common methods for achieving a stable value cryptocurrency. They fall into the categories of fiat-collateralised, crypto-collateralised and non-collateralised. Lets look at them individually.

Fiat-collateralised

The simplest method of constructing a stable value is to issue one coin per one dollar received. This method is the most foolproof currently as you can be sure that any volatility in the market won’t disrupt your liquidity as you always have enough fiat to back the coins you have issued.

The fundamental issue with this method is that it is centralised and requires a large amount of trust in the company that is holding the fiat. It is not a long term solution and is counter-intuitive to exactly what crypto is trying to solve. It’s also an expensive, regulated solution that needs frequent audits to ensure that the amount issued is in line with how much fiat is received and coins aren’t being falsely issued.

Crypto-collateralised

The same concept as above, but instead of backing your stablecoin with fiat, you back it with another crypto like Ethereum or Bitcoin. This solves the centralisation issue but falls victim to itself in that the crypto you are backing against has an unstable value. The resolution is to add more collateral than is needed which is inefficient and doesn’t solve the underlying issue as a big enough price drop could exceed the amount of collateral and force you to liquidate.

Non-collateralised

A non-collateralised coin functions like a central bank by controlling the money supply of coins in order to move the price towards $1. This is a step in the right direction but still falls short. If the current price is $1.50, more coins are created and sold into the market to lower the price. If the current price drops to $0.50, coins can’t simply be burned so the central entity has to buy up coins in the market until the price hits $1. This is completely subject to how much reserve the central entity has. They cant buy up coins forever and if they run out of buying power the whole thing will unfold. Attempts to circumvent this by selling contracts to users to temporarily fund shortfalls and pay them back once the price goes up (ponzi?) may work in the short term however the end result is the same in that a big enough price drop will leave the whole thing in ruins.

So then, the mechanism to power the ideal stable value cryptocurrency has not yet been implemented. We have ideas that are usable but questionably sustainable.

The ideal stablecoin should be secure in a crash, decentralised and collateral-efficient. None of the existing options meet all 3 criteria.

Meeting the criteria

A coin that could be burned at the current market price to record the current fiat value, could later be retrieved by minting new coins in the amount that matches the new market price at the time of retrieval. Such an idea is so simple but simultaneously solves all 3 of the criteria.

The underlying coin is decentralised and the collateral efficiency is at a maximum (burning $100 worth gives you $100 worth). It’s also secure in a crash as no matter the price, the method of minting and burning works without discrimination.

The caveat to this method working is that the underlying coin must have cryptographic measures implemented to ensure complete privacy of transactions, both senders/receivers and amounts, which in turn provides complete anonymity of the total money supply at any given time.

Lets look at an example:

If we have 200 coins and the current value is $1 USD then we can burn these coins to record a value of $200 USD. The burning of coins lowers the total supply and is a forgoing of the $200 worth of coins today, in order to preserve it for a later date.

If the price of the coin then moves to $2 USD and you want to retrieve your coins, you will be returned 100 coins (100 * $2 = $200 USD as per original value).

If the opposite occurs and the price halves to $0.50 then 400 coins will be minted and sent to you.

At first, minting new coins may make you think the value of the coin would decrease as the total money supply has increased. In practice, this operates a little different.

This ’mint and burn’ method draws on the quantity theory of money described in monetary economics in order to avoid inflation and changes in currency valuation based on the movements in the total supply.

The theory states that MV = PT where:

M = Money supply

V = Velocity of money

P = Average price level

T = Volume of transactions

An increase in the money supply should, with a constant velocity and volume of transactions (assumptions of the economic model), cause an increase in the price level (inflation). The problem with this is that the money supply of of this coin will always be unknown. The ’mint and burn’ lets the money supply fluctuate freely. Velocity of money is also cryptographically unfeasible to determine as the blockchain does not reveal the amount transferred nor the wallet addresses they are transferred to.

For this reason, the currency is unable to be valued based on total supply.

This concept is called Offshore Storage and is the basis of Haven Protocol.

Website: http://havenprotocol.com/

Discord: https://discord.gg/MUJA99K

Bitcointalk: https://bitcointalk.org/index.php?topic=2989487

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Snider

Haven

untraceable payments x stable value storage

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New ground is being broken in the cryptocurrency space with Haven’s release into the crypto world this week. Over a hundred miners jumped on board in the first few hours of the network and the initial rapid growth has been exciting to watch.

Haven is an untraceable cryptocurrency that proposes a mix of standard market pricing and stable fiat value storage without an unsustainable peg or asset backing. This means the coin can be traded at market value while also having a way to lock in market price without having to sell the coin in the market back to USD.

It achieves this by using a built in on-chain smart contract/protocol that controls the minting and burning of coins to facilitate value for users that choose to send their coins to Offshore Storage contracts while allowing everyone else to be exposed to the natural price movements of the currency.

Haven is a fork of Monero so inherits the stealth and anonymity that it’s famous for. Haven also has the benefit of starting the blockchain from scratch with RingCT for extra privacy. Further, Haven’s Offshore Storage smart contract allows privacy conscious individuals that want to keep their money in an untraceable currency without being subject to market fluctuations, a means to do so. This gives you all the power of a Swiss bank account in your backpocket.

With Haven, You can dip in and out of Offshore Storage to maintain value and do so in an invisible way due to the cryptographically secure protocols utilized on the Haven blockchain.

Lets learn a bit more about Offshore Storage.

What is Offshore Storage?

Haven is sent from your wallet to a native smart contract which will hold the balance in terms of the fiat value at the time of the transaction. This balance never leaves the Haven blockchain and as such remains completely untraceable and unlinkable to the user.

Digital currency is a useful way to keep your money out of the traditional banking system only as long as you can store it without a constantly fluctuating price and the threat of losing significant value. With Offshore Storage, you get all the privacy of cutting edge digital currency with a guarantee on the fiat value. This makes Offshore Storage ideal for storing large amounts of money out of the traditional system that you don’t want exposed to digital currency volatility.

How?

Haven uses a system called ‘mint and burn’ to maintain fiat value relationship. In practice this works as follows.

Bob decides he wants to put 200 of his Haven into offshore storage.

The offshore smart contract determines the current market value of that Haven (in USD for now) based on a weighted average of volume across supported exchanges.

If the current value is $1 USD then the contract will record a value of $200 USD worth of Haven at Bob’s request. The 200 Haven that was sent is then burned and the total money supply decreases. If the price of Haven then moves to $2 USD and Bob decides to access his Offshore Storage, he will be returned 100 Haven (100 * $2 = $200 USD as per original value).

If the opposite occurs and the price of Haven halves to $0.50 then 400 coins will be minted and sent to Bob.

At first, the minting of new coins draws you to the conclusion that the value of the coin would decrease as the total money supply has increased. In practice, this operates a little different.

This ’mint and burn’ method draws on the quantity theory of money described in monetary economics in order to avoid inflation and changes in currency valuation based on the movements in the total supply.

The theory states that MV = PT where:
M = Money supply

V = Velocity of money

P = Average price level

T = Volume of transactions

An increase in the money supply should, with a constant velocity and volume of transactions (assumptions of the economic model), cause an increase in the price level (inflation). The problem with this is that the money supply of Haven will always be unknown. Although there are 18.4 million coins (before tail emission) that will be mined, the ’mint and burn’ lets the money supply fluctuate freely. Velocity of money is also cryptographically unfeasible to determine as the Haven blockchain does not reveal the amount of Haven transferred nor the wallet addresses they are transferred to.

For this reason, the currency is unable to be valued based on total supply.

Offshore Storage contracts will be implemented once the network reaches a mature stage with enough exchange support to allow redundancy and accuracy of prices. The current focus is on growth, stability, privacy and usability for everyday transactions with an easy to use mobile wallet app that anyone can use without prior knowledge of crypto.

Offshore Storage Use Cases

  1. Point of sales systems where goods can be bought with Haven and shop keepers can immediately lock the fiat value in to protect from price fluctuations. This has the added benefit of keeping the shopkeepers business and income completely hidden on the blockchain as neither his wallet address or amounts are revealed.
  2. Storing large amount of money outside of the traditional banking system. Privacy focused cryptos are perfect for this but without a reliable way to maintain value through fluctuations the process of holding could be costly. Sending Haven offshore quite literally, makes money disappear until you want it back at which point the value remains intact.

Supply & Emission

Total supply: 18,400,000 coins before tail emission and offshore storage.

Coin symbol: XHV

Hash algorithm: CryptoNight (Proof-Of-Work)

Block time: 120 seconds

Links

Website: http://havenprotocol.com/

Bitcointalk: https://bitcointalk.org/index.php?topic=2989487.0

Discord: https://discord.gg/vWQ2GZX

Twitter: https://twitter.com/HavenProtocol

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