Havven launched its crypto-monetary system and stablecoin, which aims to combat one of the biggest problems of cryptocurrencies at the moment: volatility.
The blockchain-based solution seeks to achieve price stability with respect to an external asset. The platform is composed of two tokens: stabilized exchange tokens, called nomins, and havvens, the reserve tokens backing them.
Havven has developed a system of currency which backs itself. This method of stablecoin and reserved collateral is a simple solution to the problem of stability. It is designed to provide a practical medium of exchange, a stable cryptocurrency useful for everyday economic purposes, and to accelerate the adoption of blockchain technology to improve the technology of money.
Havven offers a digital method of payment that fulfills the same three functions that traditional forms of money and asset-ownership do, act as a unit of account, a medium of exchange, and as a store of value. Credit cards, stocks, and online accounts are all modern methods that, while invisible, have demonstrated how technology can strengthen progress and trade.
While Bitcoin is the first technological advancement to truly break ground in the world of finance by detaching from any central authority, its increased adoption and constant value growth is setting up the currency for potential short-run volatility, with no mechanism that can adjust to the changing demand. Bitcoin, while being a great store of value, cannot act as a unit of account nor as a stable medium of exchange. The Havven stablcoin system is a novel form of representative cryptocurrency that uses a collateral, two-token model to attain the steady value of such fiat currencies as the US dollar, while retaining the desirable characteristics of Bitcoin, such as transaction immutability and decentralisation.
The platform allows people to:
- Safeguard their crypto-investments
- Transfer money through stable, digital currency conversions
- Safely plan payments in advance as they would with fiat currencies
The Havven system is being released as an open source protocol built on the Ethereum network to further enable the development of decentralized systems and platforms. Havven generates fees from users who transact in the stablecoin and distribute them among the holders of the reserve token, compensating them for maintaining the system.
To maintain stability, Havven’s system generates cash flow for participants, creating a market value that can be used as the collateral to support the stablecoin. In order to keep the cryptoeconomic system decentralised and trustworthy, each user has full transparency over how many tokens have been issued against the available collateral at all times.
“There is currently no effective, decentralized unit of account,” said Kain Warwick, founder and CEO of Havven. “Through my experience with the founding of blueshyft, I understood that in order to accelerate crypto adoption, we needed a stable currency that all people and businesses could understand. With Havven, we are creating an open-source protocol with the goal to create the first trustless stablecoin.”