The blockchain and DeFi universe continue growing engaging more and more people every day. Nevertheless, what attracts most people is also what keeps others away. We are going to talk about volatility, inflation, stablecoins, and Redeemable, the new coin from Shareslake.
There has been a lot of noise regarding the continuous shifts in cryptocurrency and token values, and the majority of people, whether involved or not with this new technology, are aware of it. Nevertheless, there is still a reluctant majority that prefers to stay away from daily changes of 10% of their savings.
Stablecoins, among other things, are meant to solve this issue. Their peg to a traditional currency eliminates the wild fluctuations, allowing cautious people to jump into the crypto world. Nonetheless, stablecoins have the same undesirable trait as regular money: inflation.
Even if the price of a stablecoin is fixed, people will still be unable to preserve their wealth, because the stablecoin will lose value over time as a result of inflation, just as a regular currency would. Thus, stablecoins cannot be considered stable in terms of ‘real value.’
People are forced to lock their savings into investment products if they want to preserve their wealth, and it prevents the owner from using the funds. In order to preserve wealth while still being able to spend the money, Shareslake created the Redeemable coin. It’s the same thing as being inflation-protected without locking up funds.
Redeemable is backed up by a reserve. Users can fund the reserve to obtain RED or burn RED to get back their USD. The reserve relies on the most secure traditional assets (bonds and TIPS) to generate and accumulate interest. Unlike stablecoins, where the issuer takes such interest as profit, the Redeemable reserve accumulates it, increasing the total reserve value. Since the Redeemable supply remains unchanged during this process, each Redeemable’s backing increases, thus its value.
Redeemable is designed to adjust its value with the CPI (Consumer Price Index). The CPI measures the change in living costs. Using Redeemable one can expect to pay always the same amount of RED for a product or service, no matter how its USD price evolves due to changes in living costs.
Consider a $1000 bicycle. You may buy such a bicycle today for $1000 or 1000 REDs. By 2027, if there is a yearly inflation rate of 4%, the same bicycle will cost $1220. However, it will still cost 1000 RED, as the RED value would have changed in line with living costs.
Redeemable stands out for being ideal to maintain treasuries and cash reserves in an efficient way and aims to attract conservative people and institutions to the crypto world.
Shareslake was built as a Cardano-based network. It was the first Cardano fork ever, released on May 1st, 2022. That means Redeemable offers all the Cardano features but with a base coin that enjoys price stability and inflation protection.
Redeemable will also exist in other blockchain networks. Shareslake is building bridges to interconnect the network with other ecosystems and provide them with Redeemable advantages, starting with Cardano.
Shareslake and Redeemable were built to serve as the base for upgrading the traditional stock markets, making them more open, transparent, and accessible, and it follows a special mindset of helping small and medium size companies to grow by providing extra funding.
A new kind of stock market with unlimited potential is being forged by Shareslake.
What is Shareslake's multi-chain Bridge?
One of Shareslake's objectives is to make the Redeemable coin multi-chain. This is, being able to move and exchange Redeemable not only in Shareslake's network but also in other widely adopted networks.
How can Redeemable benefit other networks?
Blockchain users usually exchange coins and tokens with stablecoins for protection during volatility periods. Nevertheless, stablecoins, even if they are pegged to a fiat currency, are still subject to fiat currency inflation.
Redeemable offers a new type of cryptocurrency which allows blockchain users to protect not only from crypto volatility but also from fiat inflation at the same time. This is possible thanks to the unique setup of a reserve that backs up Redeemable value. Such reserve translates holding Redeemable into preserving the purchasing power over time. Read more about Redeemable coin here.
Moving Redeemable between networks opens the possibility of swapping other networks' tokens or coins by Redeemable directly from other networks' decentralized exchanges and token swap platforms. It also makes the listing of Redeemable easier in exchanges when they already support tokens from other networks. And finally and most important, it allows users of any blockchain to preserve their purchasing power when they like to maintain liquidity in their wallets.
How does the bridge work?
Shareslake's bridge works as easily as connecting your wallet to the bridge website. Then, you can select the network and address to which you intend to transfer Redeemable, and, after signing and submitting the transaction, your funds will be moved to the target network and address.
There is a token representing Redeemable on each network supported by the bridge. When the bridge performs the movement of funds between networks it issues and burns the amount to transfer or locks and unlocks the same amount into Shareslake's network.
Shareslake's bridge has been designed in a way that Shareslake's network users are always protected from minting/burning issues. A user who does not move Redeemable outside of Shareslake's network will never be affected by an error in the bridge. This is achieved by letting come back to Shareslake's network only the amount of Redeemable that went out before. Each network added to the bridge implements this same mechanism separately, so users moving Redeemable on network A will also never be affected by an issue on network B.
Current state and future of the bridge
Currently, the bridge is in an advanced development state. Initially, it will support moving Redeemable between Cardano and Shareslake. Then, we will continue working on adding new networks such as Ethereum, Solana, etc.
The bridge initially will support the movement of Redeemable only, but it will be evolving to support multi-asset transactions between networks. In the long term, the bridge will support remote execution of smart contracts, which means calling contracts of any network from Shareslake and vice versa.
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The Truth About How Stock Markets Really Work
Welcome to Shareslake, the Blockchain where real shares live. An ecosystem for companies' success.
Have you ever wondered about how stock markets work? Do you know? We can sum it up for you:
The current stock markets are closed systems designed to be operated by intermediate entities that are set between investors and the market itself. That approach incurs various fees and commissions that investors must lead with and a deficient flow of the capital from the investors to intermediate entities instead of companies. Doesn't sound good, right? Don't worry, here is the solution.
Just imagine we remove intermediates, we use blockchain technology to do that. Blockchain technology forces an open system free of intermediaries and total transaction transparency. Not bad, let's continue.
Now think about a stock market where investors don't have to pay any commission to intermedia... oh wait, we just removed them, meaning that there are no trading commissions. Well, more can be done. What if we reward listed companies? Makes sense. In the traditional market, they get funds on the IPO, but they don't see any funds unless they issue new shares, even though the shares are being traded, instead, they have to pay to be listed. We reward them for each transaction of their shares, and what is more incredible, without charging the investors for that.
The fact that the company shares are traded evidences that the company has real value, the shares are traded based on the investor’s belief that it will produce a net benefit so that trade should represent a direct fund for the company, to contribute to its success, which should be the ultimate reason of the market’s existence. An investor gives money to a company to help them reach the target of being profitable, if the investor’s trades do not affect the company's funds, the market loses its sense.
That’s the reason why Shareslake was designed in a way that, when an investor trades some shares of a company, the target company obtains a direct benefit from that operation. The more trades, the more benefit a company obtains compared with the rest of the companies, creating a competitive environment of trying to generate the highest value.
Finally, have you ever tried to move your stock portfolio to a different broker? Well, we also remove that pain, since you will have a single pluggable wallet that you can connect to any exchange operating in the Shareslake network. You will always carry your portfolio with you wherever you decide to trade.
The Shareslake protocol not only helps to remove all commissions and fees that investors used to pay, but also it provides periodical funds for companies in exchange for the usability and investing capabilities of the Redeemable, the Shareslake’s base coin.
If you are still curious about how we are shaping the future of stock markets, you can read the entire whitepaper.