StableHedge · On Bitcoin Cash
Hold a dollar on Bitcoin Cash, hedged by collateral rather than a dealer.
Deposit BCH and receive tokens pegged to USD value. The position is not a contract sold to you at a markup: half of every deposit sits in a redemption pool and the other half backs a 2x leveraged short, so price moves cancel inside your own balance. You pay transaction fees and dust, not a counterparty premium.
- 2x leveraged short
- AnyHedge on BCH Bull
- CashScript and CashTokens
What happens to a deposit
Follow the deposit, and nothing locks.
Deposit and tokenize
Deposit BCH and receive StableHedge tokens pegged to USD value. Half the deposit goes to the RedemptionContract, which holds the liquidity pool for deposits and redemptions; the other half goes to the TreasuryContract, which funds the leveraged short positions.
Rebalance against the short
The treasury holds 2x leveraged shorts as AnyHedge contracts on BCH Bull and rebalances them dynamically. When the price drops, treasury gains offset the RedemptionContract devaluation; when it rises, the RedemptionContract appreciates while the treasury shorts decrease. Either way the total BCH deposited holds its value against the peg. Fewer, larger trades keep fees down.
Redeem from the pool
A 50% redemption buffer stays liquid, so a redemption does not have to wait for a short to be unwound. Deposited BCH is not entirely locked: the rest remains available for everyday transactions, which is the difference from holding an AnyHedge contract directly.
Keep trading while hedged
A merchant keeps taking BCH at the counter and the day's sales hold their USD value, with fast transactions and low fees. A holder keeps a stable store of value and preserves capital through a downturn. A trader works price changes through reverse arbitrage. None of them has to move the funds somewhere else to get the protection.
The numbers
What the position is actually made of.
Redemption buffer
50% of a deposit sits in the RedemptionContract liquidity pool; the other 50% funds the TreasuryContract.
Leverage
2x leveraged short positions, held as AnyHedge contracts on the BCH Bull platform.
Cost
Transaction fees and dust amounts for token outputs. There is no premium set by a counterparty.
Lock-in
None. Deposited BCH is not entirely locked and is available for everyday transactions.
RedemptionContract
Handles deposits and redemptions, uses signed price oracle messages, implements the AuthGuard standard and manages the liquidity funds.
TreasuryContract
A 3-of-5 multisignature with covenant-enforced conditions. It funds the leveraged short positions and performs the rebalancing.
Built with
CashScript smart contracts and CashTokens on Bitcoin Cash, integrating AnyHedge and BCH Bull.
Release
v0.1.0.
The premium you do not pay stays in the position.
A hedge that is collateral rather than a dealer contract costs fees instead of a spread, and leaves the BCH where you can still spend it.