Announcement 9.16.2021
Dear Auric Community,
We have put together a short explanation about the functionality of the rebase mechanism in order to alleviate concerns and clear up any confusion. Rest assured, no vulnerabilities were found in the rebase logic, which has been working as initially designed.
Ａ rebase is triggered daily at 2:00 am UTC when the price of AUSCM deviates +/- 5% from the price target, which is the market price of 1 mg of gold. By expanding or contracting supply in one of two ways — positive rebase and negative rebase — elastic supply functions to achieve price-supply equilibrium.
- Positive rebase — means that if the token price goes above the threshold of +5% of the market price of 1mg of gold, the supply automatically adjusts proportionally.
- Negative rebase — means that if the token price goes below the threshold of -5% of the market price of 1mg of gold, the supply automatically adjusts proportionally.
In order to calculate the rebase rate, a running average of the price of AUSCM has to be logged in the network over 24 hours, and the first transaction of every hour of any amount of AUSCM from one wallet to another log the price. This is anything that interacts directly with the token contract itself, so a buy/sell on Uniswap would not count. Without price logging, the network cannot detect a change in price, hence the discrepancy in the rebase rate.
In other words, if no transactions are logged over a 24 hour period, the rebase rate would be calculated by using the price of AUSCM on the last logging, however long that may have been. This would not be a problem over time with the growth of the network and a consistent and sizable user base, which would mean more daily AUSCM transactions that would be logged. However, this is currently not the case and Auric is still in the very early stages of development.
The Foundation has, therefore, designated one individual to be in charge of manually sending an AUSCM transaction every 24 hours thereby logging the price every day. At least until our network is sizable to the point where a multitude of transactions are sent between users to replace the manual and individual price logging. This is not originally intended as a feature that the foundation could sustain as gas fees are also very expensive. But, due to the nature of how centralized exchanges have their own databases, we have made the commitment until further announcement to pay out of pocket for the gas fees and other costs associated with triggering the rebaser every day within a 30 min window.
Please note, that the protocol’s rebaser is directly tied to the governance, meaning that it is not a change in the design where ANY single entity can choose to turn the rebaser on/off. Anyone can trigger the rebase or log prices. That is how the network was originally designed. We have asked our exchange partners to go through a backtesting process with us tomorrow so certain exchanges may disable withdrawals/deposits for a day or 2.
For more information about our core features, please visit our website and whitepaper linked below.
About Auric Network
Auric Network (AUSCM) is a layer-2 cross-chain liquidity protocol with an elastic supply that references the price of gold.
Website | Whitepaper | Github |Telegram | Twitter | Discord
Disclaimer: AUSCM is not an investment product. It is not intended in its design or distribution to be utilized as a form of investment, speculation, or a financial product. No communications from Auric Network Limited to users constitute financial advice, a solicitation for investment, or a guarantee of a financial return. Please do your own research and investigation before participating in this project.
