Coffin Finance

Coffin Finance will be the first of its' kind, fully decentralized, capital-efficient, partially collateralized stable-token protocol on the Fantom Opera Network.

Stablecoins are a type of cryptocurrency with an exchange rate pegged to an existing fiat currency (such as the United States dollar), or any fiat-related index, thereby drastically increasing their usefulness as a medium of payment for members of the crypto-space.‌ The volatility associated with cryptocurrencies has proven to be a major issue for mass adoption. Especially in the case of Fantom, our protocol is designed to bring much more comfort in price stability with the hopes to ease the minds new user's for across the field. The protocol aims to not only increase liquidity, while creating a way to store value on Fantom Opera Network, but also want see its' implementation as a medium for more advanced use-cases after a successful launch.

Fiat-backed stable tokens, such as USDC and USDT, are issued by centralized entities. Such custodians as these choose to escrow USD and issue the stable coins onto different blockchains. They are always able to be redeemed for for their underlying assets via collateralization. However, there are some risks. One being, it is not convenient for users to confirm that a centralized authority has enough of that currency to reflect the collateral that has been reported. Another, is that such fiat-collateralized stable coins are subject to the risk of ever-changing regulatory institutions. It is for these reasons we believe such coins are not suitable for an truly decentralized culture.

Crypto-collateralized stable coins, such as DAI and sUSD, are issued on chain through an overly-collateralized mechanism. Because of this extensively collateralized mechanism, we don't need to ask a centralized authority to mint more tokens. Smart-contracts on the blockchain issue tokens automatically as long as there is enough collateral to do so. The problem here is the capital-inefficiency that results from the need for a sufficient buffer to keep it stabilized, maintaining its' value at peg. This means generating new tokens regularly, causing unnecessary financial burden. We believe that the growth of crypto-collateralized stable-coins has limits. We feel the need to look for more innovative solutions to solve this problem.

There have been several evolving stable-coin projects so far. Some are already in the "graveyard". Though others remain resilient, still imploring innovation. All of them are capital-efficient, but some, are still not very stable.

• Basis Cash
• Pollo Basic Cash
• Ampleforth
• Tomb Finance
• Terra

In the absence of collateral, as seen in these projects, it seems that only tokens which issue a tax or an auto-burning mechanism to prevent total failure.

2021 Q4:

• DAO/Governance
• XCOFFIN token
• Snapshot votes for DAO
• NFT Drop
• Buy COFFIN feature without transfer tax
• Our own, in-house developed, stable swap service on Fantom Opera Network.
• Adjustment burning mechanism for other partnerships.
• Timelock/Multi-Sig for Collateral Research, others as suggested by the community
• KYC
• Others as suggested by the community.

2022 Q1:

• NFT Gacha & Marketplace (as token use case).
• Prediction Game (as token use case).
• Using collateral reserve for lending to earn interest, to distribute FTM as reward to XCOFFIN holders.
• Others as suggested by the community.

2022 Q2:

• Games (as token use case).
• Minority Game
• Others as suggested by the community.

2022 Q3:

• NFT RPG Game (as token use case).
• Cross-chain bridges between Fantom and other blockchains. (e.g. BSC, Polygon, ETH).
• Launch on other chains.
• Others as suggested by the community.

2021 Q4:

• DAO/Governance
• XCOFFIN token
• Snapshot votes for DAO
• NFT Drop
• Buy COFFIN feature without transfer tax
• Our own, in-house developed, stable swap service on Fantom Opera Network. => CANCELED
• Adjustment burning mechanism for other partnerships.
• New Rebalancing Mechanism
• New Minting Mechanism
• New Redemption Mechanism

2022 Q1:

• New Bonding Mechanism
• Audit
• KY
• Others as suggested by the community.
• Timelock/Multi-Sig for Collateral Research, others as suggested by the community. => Partially done. However, after update our protocol, we will need it again.
• Others as suggested by the community.