Launching a new crypto project, during a market crash.

An article about the launch of ChargeDeFi (www.chargedefi.fi) on the Binance Smart Chain (BSC) during a market crash. The road up to the release of this algorithmic stablecoin v 2.0, and the decisions made during the launch.

It’s a scenario you dread when building a new project. Months of preparation, coding tailored solidity contracts, calculating tokenomics and getting in touch with relevant marketing agencies to get the word out about your new token. As security is the main focus in any new DeFi project you implement multiple security measures like static code scanning and fully automated testing in your CI/CD environment. Finally, as a last sanity check, you get one of the most reputed security and auditing firms on board. Certik goes through your contracts and tokenomics and greenlights everything.

The project is ready and the team is at the gates, ready for the race when they open. And race they do. Your tokenomics work out and the interest is huge in your new project. Then the unexpected happens…

A few days after the launch of your project several articles get released. News that turns both the regular stock and the crypto markets upside down. Evergrande, the second largest Chinese property developer and ranked 122 on the fortune 500, has been struggling for quite some time. With more than $300 billion in liabilities, Evergrande released a statement about their current creditor demands:

“In light of the current liquidity status … there is no guarantee that the group will have sufficient funds to continue to perform its financial obligations,”

Within hours the markets are in turmoil. Several large investors liquidating their long positions only increases the impact.

With the market in bad weather, you have to make a choice as a team. Evaluate all options and continue as planned, decrease your velocity and wait out the market crash. Or.. option 3: increase your velocity and invest more time into marketing and functionality.

ChargeDeFi chose option 3.

So, what is ChargeDefi?

ChargeDeFi is a new Algorithmic Stablecoin project on the Binance Smart Chain (BSC). The ecosystem consists of 3 tokens: $Static, $Charge and $Pulse. These three tokens create an ecosystem with expansion and rebase mechanics.

Similar to other Algorithmic Stablecoin projects the number of $Static tokens expands when the price of $Static is above a certain threshold. In this case that ‘peg’ is $1.01. Owners of $Charge can stake these tokens in the project and receive part of that expansion.

But that’s where the similarities end.

ChargeDeFi, Algorithmic Stablecoin 2.0

When looking at other Algorithmic Stablecoin projects one thing tends to stand out: As long as more money flows in the system expands and everyone benefits. But, by nature, Algorithmic Stablecoins create a ‘prisoner dilemma’. As long as everyone acts for the greater good of the project, everyone’s investment will keep growing. But when investors focus purely on their own gains, to the detriment of other investors, the system slows down and eventually shrinks.

Older, collateralized and uncollateralized, Stablecoins have often reached a point where the value of their token dropped below peg without any measures to reach peg again. Bond mechanics were put into place, incentivizing investors to buy bonds below peg. When the tokens reached peg again they could be redeemed, for a profit.

These bond mechanics usually worked, for a time. But they could never prevent a stablecoin from entering a so-called “death spiral”. When the value of a token dropped below a certain threshold there was no way for it to regain peg without enormous investments. Without any incentive for investors to enter the ecosystem, they slowly failed.

Rebase and Bonds 2.0

ChargeDeFi has been built from the ground up by a team of experienced developers who have previously been part of other BSC DeFi projects, including traditional Algorithmic Stablecoins. To circumvent the above-mentioned issues ChargeDeFi has implemented several “guardrails” to protect the financial integrity of the project and increase its stability.

Rebase
If $Static drops below $0.8, or if $Static is below its $1.0 peg for more than 6 Epochs (8 hours per epoch) $Static rebases. Lowering the number of tokens in circulation until the value of $Static is at $1.0 again. This impacts *all* tokens in circulation, also those in liquidity pools.

Example:
· There is 100,000 $Static in circulation worth $1.0 (value =$100,000)
· The price of $Static drops to $0.5 per $Static (value =$50,000)
· The ecosystem rebases back to peg
· There is now 50,000 $Static in circulation worth $1.0 (value = $50,000)

Bonds 2.0: $Pulse
The second measure to protect the price of $Static was implemented with $Pulse. These tokens can be bought when the price of $Static drops below $1.0 for $Static. When the value of $Static goes above its $1.01 peg these bonds can be redeemed for a profit.
But in contrast to regular bond mechanics, ChargeDefi has implemented automated bond pools. $Pulse can be staked in pools that yield BUSD when $Static is below peg, ensuring investors take yield from these bonds. During $Static expansions part of these expansions is reserved to pay off these yields.

These pools automatically redeem as many $Pulse tokens as possible when $Static goes above $1.01. Thus preventing the botting problem that other projects faced with these mechanics. For investors not wanting an automated redemption 25% of the bond pool is reserved for people who want to manually redeem. But in doing so they also prevent themselves from gaining yield that is generated in the $Pulse pool.

Expansion

When the price of $Static is above $1.01 the system expands, minting more $Static. The bulk of this expansion is shared over investors staking in the ChargeDeFi boardroom. The exact expansion amount is calculated as:

{ ($Static TWAP — 1.01 ) * index * circulation }

TWAP = time-weighted average price
Index = Initially set to 0.1, but can be modified later
Circulation =The total amount of $Static in circulation. So that exempts unclaimed $Static in reward pools.

To receive these rewards investors have 2 options:
1) Staking $Charge in the boardroom
2) Staking $Static-$BUSD in the boardroom

The $Charge pool will receive 85% of the $Static expansion, $Static-$BUSD will receive 15% of the expansion. This may seem low, but the $Static-$BUSD pool also yields $Charge tokens. 82.850 $Charge tokens have been reserved for this pool and will be released to stakers each epoch (8 hours).

Beefy launch pools

To bootstrap liquidity a the start of the project we’ve chosen to have https://app.beefy.finance feature auto compounding pools on their yield optimization platform.

On top of that ChargeDeFi has also boosted a Beefy finance pool with $50k worth of $Charge tokens.

At the moment there are two vaults active on beefy:
1) $Static-$BUSD LP auto compounding vault
2) $Charge-$BUSD LP auto compounding vault

With Beefy finance being one of the leading yield optimizers on multiple chains the audience that ChargeDeFi is reaching is staggering.

The next steps

As stated at the start of this article the global market crash surprised threw a spanner in the works but we’re still pushing forward. After our successful launch, we’ve contacted several marketing agencies, recruited people to manage marketing & communication and allocated funds for these strategies.
Marketing is only the first step though, we’re also increasing our velocity with the items that we’re releasing for ChargeDefi.

To give you some insight in whats to come in the next few weeks:
- Easy zap: Allows users to create/break LP’s from one interface.
- Easy swap: Allows users to swap $Static for $Charge without price impact.
- Pulse page: $Pulse can be bought and redeemed.
- Boardroom vaults: Auto compounding boardroom vaults.
- Smart reinvestment: Guiding users through the reinvestment process with default settings that strengthen the project.
- Pulse Pools: $Pulse staking pools that yield $BUSD below peg and autoredeem when above peg.
- Smart reinvestment pools: Staking pools that own part of the staked liquidity and use this to reinvest and increase APR over time.

And these are just the short term items to come over the next few weeks. Beyond that, we’re looking at multichain releases, more marketing options and partnerships with other projects.

Globally the markets are in a state of upheaval. But we’re confident that with ChargeDeFi we have the fundaments of a strong ecosystem that will expand over time.

Join us in this journey!

Our site: www.chargedefi.fi
Telegram: https://t.me/chargedefi

Disclaimer: Nothing in this document can be construed as financial advice. Always DYOR before investing and only invest what you can afford.