Derivatives shift the risk from the buyer of the derivative product to the seller and, as such, are very effective risk management tools. These assets improve the liquidity of the underlying instrument and perform an essential economic function, e.g., price discovery. Derivatives are better ways for raising money and contribute substantially to growing markets.
Smart contracts enable the creation of tokenized derivatives without the need for a third party. Counterparty agreements are programmatically encoded, which reduces the risk for malicious activity. This trend has allowed retail investors to take advantage of opportunities previously restricted to brokerage accounts or specialized knowledge.
As a derivatives platform in the DeFi sector, Samecoin allows permissionless asset creation. These assets are tied to the value of a basket of cryptocurrencies. With Samecoin’s SameUSD and SameEUR backed by various stablecoins, the Samecoin platform offers exposure to traditional markets directly, with Samecoin as the utility token of the Samecoin Ecosystem.
What is Samecoin ecosystem?
Samecoin ecosystem has multiple stablecoins (SameUSD, SameEUR, and more) that aims to use blockchain technology to improve the way payments and authentication are done in the cryptocurrency ecosystem. By reducing price instability and the need for time-consuming KYC procedures, Samecoin offers a simple multipurpose ecosystem for anyone interested in quick and reliable transactions.
To sustain price stability, Samecoin’s stablecoins are pegged to a basket of stablecoins. In case of price level changes of an individual stablecoin, Samecoin’s stablecoins do not get affected as it is not dependent on any one specific stablecoin in the market. Therefore, Samecoin ecosystem users always have a constant purchasing power while not sacrificing its usability as a quick and easy transaction method.
What’s unique about Samecoin?
The two most important features of the Samecoin Ecosystem are SameID and SamePay, which simplify how cryptocurrency payments are made.
SameID allows its users to authenticate on the blockchain. This fact implies that your account is secure and easy to use. By having a SameID account, you can log in to any other third-party site or product without the need to create separate accounts on each of them, which reduces complexities and security risks.
Furthermore, SameID allows filtering out and blocking applications from specific countries and age groups and creates automatic spending limits. SameID itself does all of these. Therefore, no private data is shared with third-party sources, keeping you at maximum security.
SamerPay simplifies how you buy, send, receive and exchange cryptocurrencies. Using SameID username, you don’t have to deal with hard-to-read addresses that can be misunderstood, causing irreversible losses. Since Samepay operates by using Samecoin, transaction fees are reduced while having price stability (with SameUSD/SameEUR) and fast transaction speeds.
For Businesses, SamePay offers an easy-to-use payment processing solution that reduces transaction and currency conversion fees. SamePay users can focus on their business when transactions are automatically settled to your specific fiat or cryptocurrency.
How the Samecoin Economy works
Samecoin ecosystem uses four main tools to sustain its economy:
- Minting allows you to deposit stablecoins and get SameUSD or SameEUR in return. You can exchange SameUSD back to other stablecoins whenever there is a need for it. Users easily spend cryptocurrency without buying or selling any other stablecoin.
- The savings system allows Samecoin stakers to receive rewards in return for locking in their coins. Stablecoins are also accepted, preventing exposure to price fluctuations.
- Governing mechanism allows Samecoin stakers to vote on proposals or create new proposals for the development of the ecosystems. Therefore, stakers have control over such decisions in contract specification, minting fees, and staking rewards.
Platform staking offers Samecoin holders that use SamePay to transact with discounted fees for trading and transacting with their coins.
Features of Samecoin Protocol
Innovative coin protocol uses smart contracts to allow DeFi solutions that sustain its economy. The essential functions that are set for the Samecoin protocol are:
- Minting SameUSD and Samecoin
- Rewards participation in staking and minting
- Governance through the use of Samecoin
- Burning Samecoin to create deflation in the economy
- Burning SameUSD to keep supply equal to the stablecoin reserve
The three major components that create the Samecoin ecosystem are Samecoin Finance (the core), Samecoin Governance (DAO), and Samecoin Infrastructure (the applications).
Samecoin Finance allows its users to Mint, Save, Loan, and Swap by using pre-made intelligent contracts. These functions are the effective backbone of the Samecoin economy because they make up the primary economic activities on the platform.
Samecoin Infrastructure comprises three main solutions that allow its users to improve the use of various blockchain services:
- First, SameID permits the use of decentralized, blockchain-based account verification.
- Second, SameOracle creates a gateway for smart contracts and blockchains to communicate with each other and the outside world. SameOracle uses ranking and reputation systems to encourage processors to contribute as much as possible to the system so that the bridge between Samecoin protocol and outside data is always working at total capacity.
- Third, we have the SamePay feature that allows an easy way of purchasing, sending, receiving, exchanging your coins through an application on your preferred device by simplifying how crypto-based payments are made.
Further, Samecoin governance tokens allow the Decentralized Autonomous Organization (DAO) by using a voting system from Samecoin stakeholders. Samecoin Governance controls the following actions over Samecoin Finance:
- Adjustment of Mint/Save/Loan/Swap contracts;
- Adjustment of redemption and Minting fees
- Adjustment of reward for each contract
- Adding/removing the backed assets of the Samecoin’s stablecoins.
For the Samecoin infrastructure, the main processes that are controlled by the Samecoin Governance mechanism are:
- Adjustment of the parameter of SameOracle’s system
- Adjustment of margin for SameOracle Processors
- Adjustment of reward for SameOracle Processors
- Adding/removing the parameter of SameID KYC.
- Samecoin’s ecosystem is built to simplify the way cryptocurrency payments are made, while ensuring price stability and security.
- The three main modules that run the ecosystem — Samecoin Finance, Infrastructure, and Governance — serve as one system and provide all the Features on the Samecoin protocol work as intended.
- SamePay and SameID allow Samecoin users to transact without spending time to verify all the details that are usually required by third-party services. Therefore, Samecoin offers a more advanced solution that is a step up from other currently existing derivatives platforms.
- One can say that Samecoin offers the best of both worlds – the instant processing and security of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.