What Is Inflation Adjusted USDS(IUSDS)? Complete Guide & Review About Inflation Adjusted USDS

What Is Inflation Adjusted USDS(IUSDS)?

Spice Trade protocol is introducing a new revolutionary concept: Inflation Adjusted USDS stable coin that automatically adjusts and protects against inflation. On a monthly basis, as U.S. Bureau of Labor Statistics releases CPI data, the peg for iUSDS adjusts to account for inflation (or deflation). The goal here is to create a stable coin that maintains the relative purchasing power of USD.

The formula is as follows: Peg (iUSDS) = $1 / Buying Power Coefficient where Buying Power Coefficient (or BPC) = CPI as of January 2022 / Current CPI For example, as of May 2022, the latest CPl data published by BLS is for March 2022: March 2022: 287.504 January 2022: 281.148 Source: https://www.bls.gov/cpi/tables/supplemental-files/home.htm Therefore, Current BPC = 0.97789 and Peg (iUSDS) = 1/0.97789 = $1.0226 As BLS data updates over time, BPC gets updated based on a ramp up (or down) function to avoid sudden moves in the peg

Important Points Table Of IUSDS

How to Buy the Continental & Trade On Exchange?

Go-To-Market Strategy

To start the journey, the Spice Protocol has rolled out two tokens:

• Spice (Ticker: SPICE) is the base token
• Spice USD (Ticker USDS) is soft-pegged to USD

Initially, the value-stability of USDS is provided via an algorithmic design. While one’s knee-jerk’s reaction might be to consider Spice Trade an algo-stable platform, this cannot be further from the truth. Spice Trade (unlike its predecessors) is not limited to algo-stable designs.

Inflation Adjusted USDS fact, as explained in the next few sections, Spice Trade is built based on modular design principles that enables it to accommodate various ways of achieving value-stability (whether invented or to be invented in the future) into the same token system.

Spice Trade and Starfish Topology

Any value-stable protocol requires massive and deep liquidity to maintain its pegs. For example, an algo-stable arbitrage based protocol requires deep liquidity to make it worth it for arbitrageurs to maintain a tight peg. Spice Trade has built yet another massive advantage over its competitors by designing its price oracles as well its liquidity pools to work with Starfish Topology (pioneered by RadioShack.org). Through partnering with RadioShack, Spice Trade can create a competitive edge for itself while simultaneously benefiting RadioShack (win-win scenario).

For example, to provide liquidity for SPICE and USDS, Spice Trade simply pairs its tokens with RADIO tokens through a joint liquidity pool, creating deep liquidity for both tokens virtually at no cost

Tokenomics

Inflation Adjusted USDS overall tokenomics philosophy follows a modified version of Nash-Equilibrium Token Defense (NETD) formula that was originally developed by the Atlas USV protocol (Read about NETD here).

As such, Spice Trade’s initial fully diluted supply will include all the elements that were originally developed for Atlas USV, including:

• Protocol Owned Defensive Lockbox (PODL)
• K-Factor Marketing Lockbox (KFML)
• Reciprocal Altruism Charity Lockbox (RACL)
• Co-Founder Wallet (CFW)
• Early Advisors and Capital Partners (EACP)

Three new pools are added to Spice Trade NETD to account for the additional interplay of market participants:

• Liquidity & Ecosystem Rewards Program (LERP) provides liquidity to RadioShack Starfish (and other future liquidity pools)
• Protocol Stability Buffer (PSB) provides a buffer against small variances in Spice Protocol’s value-stable tokens
• Protocol Development and User Reward Pools (PDURP) provides incentives for protocol contributors, users, partners, and community to participate and contribute to the protocol as needed

Initial Supply Breakdown

Disclaimer: Inflation Adjusted USDS Tokenomics are subject to change without notice at any time while the app is in beta.

As mentioned before, it is expected that a large portion of the supply is needed for liquidity pairing in the Starfish Topology. As such:

• Initial SPICE supply on Avalanche (the first chain for launching SPICE) is set at 100M tokens
• ~30% of each chain’s Initial Supply is dedicated to LERP