Protocol Update Proposals

Proposal Overview

The problems

  • While allowing a complete lack of regulation over both the minting and redeeming processes, bad actors can take advantage of our system.
  • The protocol cannot control Inflation & deflation as of now.
  • So much to a degree, that CoUSD is approaching failure.
  • It may be due to the lack of the redeem function temporarily, therefore the utility it had on our protocol’s site.
  • We currently use a collateralized system of mainly Fantom, with a minor amount of COFFIN to supplement it and strengthen itself.
  • It has become apparent that this coin alone is too volatile for our needs.
  • Now without the redemption feature, CoUSD is backed entirely by Fantom taking away our ability to adjust accordingly with a deflationary mechanism
  • At this rate, the price of CoUSD is going to align with a very volatile ratio, lacking in appropriate collateral.
  • We need to prevent inflation, and we believe that the protocol alone should control both the minting and redemption of CoUSD.
  • Unfortunately, abusers of arbitrage have brought the health of the protocol to a critical level, and we need to stop those actions.
  • At the same time, CoUSD and the protocol operating behind it need to ensure a product of value to our community

How We Are Going To Solve The Problem:

  • We need to improve our collateral mechanism.
  • Using transfer tax for xCoffin incentive. And using marketing funds as well, it’s up to 2 months or until CoUSD peg recover.
  • We may reduce farm rewards temporary instead.
  • Our new collateral reserve will be consistently rebalancing itself with a diversified portfolio of stable assets to keep the protocol at a level of zero risk possible.
  • Users will be able to mint CoUSD at a discount and will be able to collect it later. Or users will be able to mint immediately without discount.
  • To maintain a healthy supply of CoUSD, users may only mint/redeem when we have an acceptable ratio of collateral and the price is within acceptable range. (Similar To the logic of FRAX Finance.)
  • Though of course COFFIN must have utility and value in itself.
  • So we still refer to it as one of our collateral stablecoins.
  • There will be a limitation on the amount a user may mint/redeem, based upon both the current collateral to debt ratio, and the frequency with which the mint/redeem per day.
  • The protocol will have limitations for total daily redemption for each address.
  • The protocol will have limitations for total hourly redemption.
  • Users can redeem CoUSD to FTM + COFFIN , but receive it a few days later.
  • New Bonding Mechanism for CoUSD demand.

A new partially collateralized token mechanism in action

Using transfer tax and change threshold of burn/tax.

  • We should use the transfer tax partially for xCOFFIN users, bassicaly.
  • Temporary, up to 1 month, we should change the threshold to $0.00, to incentivize xCOFFIN holders. After 1 month, change it to $0.9. After 2 months of now $0.98 back. After 3 months, 50% of the tax should be used for xCOFFIN.

Marketing funds for xCoffin incentive

Reducing farm rewards temporary

New Collateral Reserve / Rebalancing

A New Mint Mechanism

A New Redemption Mechanism

  • 1 CoUSD => (2) days later => $1 worth of FTM.
  • 1 CoUSD => (2) days later => $1 worth of FTM+COFFIN
  • Limitation by current price
  • daily limitation
  • Enough collection delay. It’ll be more than 2 days.

To prepare a new collateral & redemption system, continue to disable redeem another 4 weeks after voting resolution.

New Bonding Mechanism for CoUSD demand.

  • Users bond $1.00 worth of CoUSD => (5 days later) => users will receive $1.10 worth of COFFIN. ( APR 730%
  • Users bond $1.00 worth of CoUSD-USDC => (5 days later) => users will receive $1.10 worth of COFFIN. ( APR 730%
  • Users bond $1.00 worth of CoUSD-USDC => (5 days later) => users will receive $1.10 worth of COFFIN. ( APR 730%

How to keep the CoUSD price stable. Buyback options with collateral if enough collateral. Sell options if above peg.

New Road map & Expected Schedules

  • Stable token itself.
  • Bonding mechanism to prepare bear season.
  • Rebalancing.
  • Security.
  • New Minting/Redemption mechanisms.
  • Others as suggested by the community.
  • Rebalancing ( estimate: first 2 weeks after voting )
  • New minting/redeem system ( estimate: next 2 weeks )
  • Bonding system ( estimate: next 2– weeks )
  • Audit & Partnership ( after finishing above )



Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Coffin Finance

Coffin Finance


Welcome to Partial Collateralized Algorithmic Stable Token Project on #Fantom. => Join our community. #ftm #coffin #defi