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

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

What Is Inflation Adjusted USDS(IUSDS)?

Inflation Adjusted USDS Spice Trade protocol is introducing a new revolutionary concept: A 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.

Inflation Adjusted USDS Key Points

Coin BasicInformation
Coin NameInflation Adjusted USDS
Short NameIUSDS
Circulating SupplyN/A
Max Supply2,210,259
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Official Project WebsiteClick Here To Visit Project Website

IUSDS Price Live Data

The live Inflation Adjusted USDS price today is $1.01 USD with a 24-hour trading volume of $5,689,564 USD. They update IUSDS to USD price in real-time. Inflation Adjusted USDS is up 0.01% in the last 24 hours. The current CoinMarketCap ranking is #2862, with a live market cap of not available. The circulating supply is not available and the max. supply is not available.

If you would like to know where to buy Inflation Adjusted USDS at the current rate, the top cryptocurrency exchange for trading in Inflation Adjusted USDS stock is currently RadioShack (Avalanche). You can find others listed on crypto exchanges page.

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.

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. In 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.

Control Systems on the Blockchain

Any value-stable coin is, by definition, a closed-loop feedback control system. In other words, when the token price deviates from a setpoint (for example, $1), there’s a mechanism in place to “sense” the deviation and then attempt to regulate it back to the setpoint. This is in principle no different than a simple home thermostat that turns a heater on an off (via an actuator) to regulate the temperature. The following shows a basic feedback-loop control system.

Initial Supply Breakdown

Disclaimer: 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
  • The initial supply of SPICE on all other chains is determined proportional to the square root of TVL across protocols on that chain, as estimated by Defi Llama