Introducing Ceres, a central bank of algorithm

5 min readNov 21, 2021

Hello! I am glad that you discovered the Ceres protocol. I am Ceres, the goddess of harvest in Roman mythology. This is my first post. I will try to explain all aspects of the Ceres protocol to you in a concise manner. After reading the post, I hope that you will have a clearer understanding of the Ceres protocol, and understand how to participate in the protocol and become a member of Ceres DAO.

What is Ceres?

Ceres is a protocol of algorithmic stablecoin controlled by smart contracts. Based on a series of algorithms, with its price pegged to $1 U.S. dollar, the stablecoin is called the AS Coin (abbreviated as ASC), named after the copper coin AS of ancient Rome, an early credit currency in human history.

The Ceres protocol will be first deployed on Binance Smart Chain and then on various mainstream public chains, which can interact with each other through cross-chain bridges.

What is the vision of Ceres?

• Continue to expand the circulation of ASC with high capital efficiency, and make the trading price of ASC gradually approach $1

• Import a variety of native cryptocurrency assets to build a value store for ASC, creating a fully decentralized stablecoin underpinned by diversified value

• Upgrade the protocol to an algorithm-based central bank, which locks in more value and liquidity for the DeFi ecosystem and becomes an infrastructure for stablecoin issuance

Why we need algorithmic stablecoins?

· Algorithmic stablecoins do not need the guarantee from centralized institutions or organizations, it is a currency that adheres to the concept of decentralization

· We believe that algorithmic stablecoins represent the endgame of stablecoins in the future, which will draw massive market demand

· Algorithmic stablecoin is the holy grail of DeFi and an indispensable part of the DeFi ecosystem

How the Ceres works?

A partial and diverse collateral

We believe that, with no collateral with actual value to peg against, it will be difficult to achieve the final stability of the stablecoin price. Therefore, when the Ceres protocol is launched, to ensure the stability and ease the use of participants as much as possible, the BUSD based on BSC will be used as the prime collateral of the protocol. After that, the Ceres protocol will reduce the proportion of collateral through a series of mechanisms to maximize the capital efficiency and gradually involve more native crypto assets as the collateral to achieve the diversified value support and complete decentralization.

Protocol controlled value (PCV)

The value locked in Ceres is under the control of the protocol’s smart contracts, and the information delivered by the external oracle (e.g. Chainlink) determines market demand and regulates the issuance of stablecoins.

PCV is expected to optimize the use of the locked value in it to maintain the stability and expansion. PCV can also alleviate some irrational fluctuations caused by human emotions, as encountered by many algorithmic stablecoins, a typical death spiral dominated by fear.

The Central bank

The central bank of the Ceres protocol is a series of asset pools based on smart contracts. It is similar to the central bank function of a sovereign country in the real world, storing assets and regulating currency issuance. Ceres’ central bank accommodates the collateral and other mediums used to issue ASC stablecoins, and the protocol controls these collaterals and mediums to regulate the issuance of stablecoins. The central bank and PCV cooperate with each other to bring stability to the protocol. At the same time, the central bank is also a very easy gateway for funds to enter the protocol. The participation of more funds will inevitably lead to the expansion of scale and enhance the expansion of the protocol.

Value capture

The success of any cryptocurrency project depends not only on the innovation of the project itself, but also on the benefits that the users and funds can get from it, which essentially comes from the value capture of the development dividend of the project. The Ceres protocol designs a comprehensive and feasible value capture mechanism, which obtains and distributes the benefits from the project’s development to the users and funds. Such a value capture mechanism accelerates the construction of Ceres protocol’s ecosystem, building a virtuous cycle between project development and benefits.

How the tokenomics works?

Ceres protocol creates two tokens to build its economic system, named ASC and CRS respectively.

ASC is a kind of stablecoins pegged to one dollar. The goal of ASC is to become a crypto with both the function of value storage and trading and eventually realize a huge circulation scale and a wide range of application scenarios.

CRS is the revenue and governance token of Ceres protocol, which is endowed with 3 major functions: 1. The medium of ASC issuance; 2. The carrier of value capture; 3. DAO governance.

CRS Distribution

Total Supply：1 billion

Why Ceres launches on BSC first?

Compared with Ethereum, the development cost of BSC is lower and the speed is faster. BSC’s infrastructure is also very complete, with everything we need, including DEX, oracle. Moreover, there are many excellent projects in the ecosystem of BSC, and we believe that Ceres can interact with them very well to form a network effect.

How to participate and obtain benefits?

In the foreseeable future, you can deepen your participation in the Ceres protocol through the following methods.

Airdrop

The Ceres application on the BSC Testnet will be launched soon, and the CRS tokens you get on the Testnet App of Ceres will get you a retrospective airdrop once mainnet launches.

Fair Launch

Next, Ceres will adopt a fair launch program to distribute a certain percentage of CRS to the participants of this event and attach certain rewards with it. The funds obtained from the fair launch will be mainly used for early liquidity guidance.

Liquidity Mining

Eventually, Ceres will start liquidity mining on the BSC mainnet and start the issuance of ASC. You can participate in Ceres’s unique liquidity mining in accordance to the guidance of the document.

Governance

With the development of Ceres, members of the community can participate in the governance of Ceres DAO with the CRS to build Ceres and receive the continuous benefits captured by Ceres.