StableCoin Gold

The main tasks and challenges

What did the client come to us with?

The client came with a general request to make him a stable coin that would be tied to the price of gold and a small admin panel with transaction history, wallet addresses, and a list of actions that were applied there. He didn’t have any documentation, he had what is called a white paper.

Our assessments

We estimated it would take at least 280 hours. In principle, we managed to complete the basic configuration much earlier, but now we have developed the algorithm for maintaining the price relative to gold work more precisely and subtly. Now, we can choose the level of sensitivity of the algorithm to price fluctuations. Additional work consisted in ensuring that the price binding was carried out completely without any action on the part of the client.

How We Picked Technologies 

Our blockchain exists on the Ethereum network – this was the client’s initial requirement. We aslo picked Vue.js for admin panel development.

Design

The smart contract itself does not require any design because it is purely backend. The clients provided us with the design of the admin panel. First, we deployed the given template on the server, and then the clients provided a very general design based on the color scheme and the approximate arrangement of the elements.

Development team

Only one developer is working on the project because he is the only one on the team who has dealt with blockchain. He had previous experience with URCTRL, which also includes the use of cryptocurrency.

The main development process

Description of the development

At the beginning, it was necessary to familiarize yourself with the regulatory documents like the ERC-20 standard, a general blockchain list of recommendations, compliance with which increases the legitimacy of a token. The standard includes such things as a ban on a smart contract from burning tokens in other people’s wallets without explicitly notifying the owners of this wallet. That is, this is a set of fairly basic precautions that should protect token owners and the audience from potential and obvious fraudulent actions by smart contract creators. It was also necessary to learn US law, its specifics, and prohibitions.

Then, our developer wrote the smart contract logic, a set of methods implemented with these tokens. Then he began to create an admin panel and integrate the template. Next, he began to write the methods of interaction between the admin and the smart contract so that these methods inside the smart contract are implemented by pressing buttons on the screen.

Then, the developer deploys the contract in the testnet, an environment to test the smart contract. Next, the smart contract is uploaded to the mainnet, where it is available to everyone for reviews, for the aggregator, the exchange, and any user. And since then, we have been setting up a mechanism for auto-balancing the price so that it more accurately corresponds to gold.

We also planned to attach a form to the client’s website that would allow the client to create an application so that third-party clients could buy from our clients through their website, and not through the blockchain. The client’s website was supposed to display the price of the token plus $10 so that they could earn on top of it. We also supported the project by promoting it to some extent. That is, we submitted applications to aggregators and personal exchanges to create the social capital of the token, to increase its trust among the general audience.

Development Difficulties

Development difficulties arose with interaction with wallets. Because the services that provide wallets are third parties, and we have a rather limited influence on how they, for example, show our token. For example, the METAMask wallet does not show inside how much our token costs. And so far, our token has low social capital, so each transaction to user wallets requires confirmation that the user knows that they are accepting some unverified crypto and takes responsibility for what happens to it.

There are still technical issues with the fact that at the last moment, it turns out that the wallets did not confirm the transactions to us to control the payment. That is, the automatic addition and subtraction of money and tokens. But this issue was resolved by our developer.

Collaborating with a Client

The client and I had daily communication via calls and video conferences about current progress.

Solution

Stable Coin Gold is a smart contract with an admin panel that will allow our client, in principle, to receive more timely information and manage tokens. The admin panel displays the current prices for our token per gram of gold, what is our liquidity pool and how much money and tokens are in the liquidity pool.

The client can create tokens, send them to the admin, other addresses, and burn them. The client can also enable and disable the binding to the price. Again, the admin has an algorithm to bind to the price, to gold. If gold has become more expensive than our token, we take and add money to this same pool, or reduce the number of tokens. So they turn out to be more expensive or cheaper. That is, it depends on how we manipulate these two variables – the number of tokens and money.

We have a moment when a client’s wallet is tied to us, which provides payment for transactions. Each transaction in the blockchain costs a certain amount of money. And we have a client wallet on which they keep their funds, pay for each transaction of adding and subtracting tokens, and adding or subtracting money. And we also have an algorithm that supports the price of gold by making small trades. That is, every minute it looks at how much the price of gold and the price of the token differ. And either sells or buys a certain number of tokens to balance it in one direction or another.

Current status

The main functionality is completed and is launched live. This cryptocurrency also already exists and is available for use. Currently, the client has ordered additional work regarding the upgrade of this project.