What Is Exist (EXIST)?
Exist tries to create a virtuous cycle business ecosystem to provide game players with a reliable and sustainable gaming environment. To this end, Exist plans to provide the platform services as follows: Each component is organically connected, and all transaction details are processed through the blockchain network, ensuring the integrity of the entire contract process. When a borrower opens a vault, an additional 50 VST debt is issued, and 50 VST is minted and sent to a dedicated contract for gas compensation – the “gas pool”.
When a borrower closes their active vault, this gas compensation is refunded: 50 VST is burned from the gas pool’s balance, and the corresponding 50 VST debt on the vault is cancelled. The purpose of the 50 VST Liquidation Reserve is to provide a minimum level of gas compensation, regardless of the vault’s collateral size or the current price of the collateral.
Exist Storage Key Points
| Coin Basic | Information |
|---|---|
| Coin Name | Exist |
| Short Name | EXIST |
| Circulating Supply | N/A |
| Total Supply | 3,000,000,000 |
| Source Code | Click Here To View Source Code |
| Explorers | Click Here To View Explorers |
| Twitter Page | Click Here To Visit Twitter Group |
| Whitepaper | Click Here To View |
| Support | 24/7 |
| Official Project Website | Click Here To Visit Project Website |
Exist Team’s Mission
The Exist Team’s mission is to provide a ‘reliable and sustainable gaming environment’. To this end, they are to solve the problems raised above with a blockchain-based game platform. The solutions to the problems presented by the Exist Team are as follows. The protocol thus directly compensates liquidators for their gas costs, to incentivize prompt liquidations in both normal and extreme periods of high gas prices. Liquidators should be confident that they will at least break even by making liquidation transactions.
Gas compensation is paid in a mix of VST and the collateral. While the collateral is taken from the liquidated vault, the VST is provided by the borrower. When a borrower first issues debt, some VST is reserved as a Liquidation Reserve. A liquidation transaction thus draws the collateral from the vault(s) it liquidates, and sends the both the reserved VST and the compensation in the collateral to the caller, and liquidates the remainder. When a liquidation transaction liquidates multiple vaults, each vault contributes VST and the collateral towards the total compensation for the transaction.
P2E Model
Exist rewards game players for completing game missions. There are various types of missions for each game, such as attending, leveling up, and completing daily quests. As soon as the mission is completed, points that can be used only in the game are given, which is the first means for users to be rewarded. These points can be used only for exchange with Exist (EXIST) tokens, and the exchange rate changes according to the realtime price and circulation amount of Exist (EXIST) tokens traded on the exchange. The immediate payment of tokens and the intermediate exchange stage are to prevent excessive token inflation and maintain a strong token ecosystem.
In Exist want to maximize liquidation throughput, and ensure that undercollateralized vaults are liquidated promptly by “liquidators” – agents who may also hold Stability Pool deposits, and who expect to profit from liquidations. However, gas costs can be substantial. If the gas costs of your public liquidation functions are too high, this may discourage liquidators from calling them, and leave the system holding too many undercollateralized vaults for too long.
But if the redemption causes an amount (debt – 50) to be cancelled, the vault is then closed: the 50 VST Liquidation Reserve is cancelled with its remaining 50 debt. That is, the gas compensation is burned from the gas pool, and the 50 debt is zero’d. The collateral surplus from the vault remains in the system, to be later claimed by its owner.
The Stability Pool
Any VST holder may deposit VST to the Stability Pool. It is designed to absorb debt from liquidations, and reward depositors with the liquidated collateral, shared between depositors in proportion to their deposit size. Since liquidations are expected to occur at an ICR of just below 110%, and even in most extreme cases, still above 100%, a depositor can expect to receive a net gain from most liquidations. When that holds, the dollar value of the collateral gain from a liquidation exceeds the dollar value of the VST loss (assuming the price of VST is $1).
Mixed liquidations: offset and redistribution
When a liquidation hits the Stability Pool, it is known as an offset the debt of the vault is offset against the VST in the Pool. When x VST debt is offset, the debt is cancelled, and x VST in the Pool is burned. When the VST Stability Pool is greater than the debt of the vault, all the vault’s debt is cancelled, and all its collateral is shared between depositors. This is a pure offset. It can happen that the VST in the Stability Pool is less than the debt of a vault.
In this case, the the whole Stability Pool will be used to offset a fraction of the vault’s debt, and an equal fraction of the vault’s collateral will be assigned to Stability Providers. Exist The remainder of the vault’s debt and collateral gets redistributed to active vaults. This is a mixed offset and redistribution. Because the collateral fraction matches the offset debt fraction, the effective ICR of the collateral and debt that is offset, is equal to the ICR of the vault. So, for depositors, the ROI per liquidation depends only on the ICR of the liquidated vault.
