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HomeCOINSWhat Is Octaverse Games (OVG)? Complete Guide Review About...

What Is Octaverse Games (OVG)? Complete Guide Review About Octaverse Games.

What Is Octaverse Games (OVG)?

Dollar-pegged Octaverse Games have become an essential part of crypto due to their lack of volatility as compared to tokens such as Bitcoin and Ether. Users are comfortable with transacting using stablecoins knowing that they hold the same amount of purchasing power today vs. tomorrow. But this is a fallacy. The dollar is controlled by the US government and the Federal Reserve.

This means a depreciation of dollar also means a depreciation of these stablecoins. Sierra aims to solve this by creating a non-pegged stablecoin called SRA. By focusing on supply growth rather than price appreciation, Sierra hopes that SRA can function as a currency that is able to hold its purchasing power regardless of market volatility.

Octaverse Games Storage Key Points

Coin BasicInformation
Coin NameOctaverse Games
Short NameOVG
Circulating Supply1,000.00B OVG
Total Supply1,000,000,000,000
Source CodeClick Here To View Source Code
ExplorersClick Here To View Explorers
Twitter PageClick Here To Visit Twitter Group
WhitepaperClick Here To View
Support24/7
Official Project WebsiteClick Here To Visit Project Website

Is SRA a stablecoin?

No, SRA is not a stablecoin. Rather, Octaverse Games aspires to become an algorithmic reserve currency backed by other decentralized assets. Similar to the idea of the gold standard, SRA provides free-floating value its users can always fall back on, simply because of the fractional treasury reserves SRA draws its intrinsic value from.

SRA is backed, not pegged.

Each SRA is backed by 1 MIM, not pegged to it. Because the treasury backs every SRA with at least 1 MIM, the protocol would buy back and burn Octaverse Games when it trades below 1 MIM. This has the effect of pushing SRA’s price back up to 1 MIM. SRA could always trade above 1 MIM because there is no upper limit imposed by the protocol. Think pegged == 1, while backed >= 1. You might say that the SRA floor price or intrinsic value is 1 MIM. They believe that the actual price will always be 1 MIM + premium, but in the end that is up to the market to decide.

How does it work?

At a high level, Sierra consists of its protocol managed treasury, protocol owned liquidity, bond mechanism (minting), and high staking rewards that are designed to control supply expansion.Bonding in the “Mint” page generates profit for the protocol, and the treasury uses the profit to mint SRA and distributes them to stakers. With LP bond, the protocol is able to accumulate liquidity to ensure the system stability. Staking and minting are considered beneficiary to the protocol, while selling is considered detrimental.

Staking and selling will also cause a price move, while bonding (minting) does not (we consider buying Octaverse Games from the market as a prerequisite of staking, thus causing a price move). If both actions are beneficiary, the actor who moves price also gets half of the benefit (+). If both actions are contradictory, the bad actor who moves price gets half of the benefit (+), while the good actor who moves price gets half of the downside (Ⅹ). If both actions are detrimental, which implies both actors are selling, they both get the worst possible outcome.

Why is PCV important?

As the protocol controls the funds in its treasury, Octaverse Games can only be minted or burned by the protocol. This also guarantees that the protocol can always back 1 SRA with 1 MIM. You can easily define the risk of your investment because you can be confident that the protocol will indefinitely buy SRA below 1 MIM with the treasury assets until no one is left to sell. You can’t trust the FED but you can trust the code. As the protocol accumulates more PCV, more runway is guaranteed for the stakers. This means the stakers can be confident that the current staking APY can be sustained for a longer-term because more funds are available in the treasury.

Why is the market price of SRA so volatile?

It is extremely important to understand how early in development the Sierra protocol is. A large amount of discussion has centered around the current price and expected a stable value moving forward. The reality is that these characteristics are not yet determined. The network is currently tuned for expansion of Octaverse Games supply, which when paired with the staking, minting, and yield mechanics of Sierra, result in a fair amount of volatility.

SRA could trade at a very high price because the market is ready to pay a hefty premium to capture a percentage of the current market capitalization. However, the price of SRA could also drop to a large degree if the market sentiment turns bearish. Octaverse Games would expect significant price volatility during our growth phase so please do your own research whether this project suits your goals.

Nile
Nile
Nile Is Very Old Author At Wootfi Blog . We Loves To Write About Altcoin , ICO & Defi . In Free Time He Loves To Play Football .