Everyone Can Issue USD Now
Issue US Dollar Bill (USD) on your terms, instantly and even with discount
Issue US Dollar Bill (USD) in a few clicks, buy CENTUS Stable Cent and start to earn the Seigniorage Rate determined by the CENTUS community.
You can issue US Dollar Bill (USD) at a discount from face value and get income (seigniorage) from USD issue.
1. The fee for the issue of US Dollar Bill is 1% of the issue amount.
2. The floating interest rate for using USD determined by the BILLEX network members is paid every Tuesday and Friday.
3. There is no maximal time limit set on USD use.
WHAT YOU BENEFIT FROM ISSUING USD?
Thanks to the issue of USD, you increase your CENTUS by 2–3 times and, accordingly, profit from seigniorage increases proportionally minus interest payment for using USD.
Based on US Dollar Bill (USD) Issue
All funds remain under your control, you simply can not withdraw assets from your multisig account until you repay USD.
If you create USD against CENTUS collateral, you will at least receive double amount of dividends (seigniorage) during the entire period of using USD.
Suppose you own BTC, ETH or other cryptocurrency that you do not want to sell in order to increase the price. If you issuing USD, you will lose nothing. On the contrary, you will receive additional income from owning CENTUS purchased through the issue of USD.
You just get profit from seigniorage 2 times a week paying an interest for using USD from these income. Generally, this interest is much lower than CENTUS seigniorage.
When you want to repay all or part of your USD, you simply sell the required amount of CENTUS for USD at any Stellar DEX from your multisig wallet (we always confirm transactions in both directions).
After that you send USD to a special Stellar address specified in the repay form and in your issue request. Once the USD is repaid, you can send all the assets from your multisig account to your regular Stellar address along with the accumulated profit.
In addition, you can withdraw the accumulated profit from your multisig wallet twice a week.
HOW SHOULD I DO TO ISSUE USD?
You need a multisig account to issue USD.
OPTION 1:
The amount of collateral is equal to the amount of the issue USD.
1. Add 3 signatures in your multisig account: one of them should be your public address and 2 others should be the public addresses indicated below. They are added as co-signers:
GDASXO4TUY5XZXEU2LIZVUA752AIAUXRNCBCZMZ2UDDWXFNDGRJXMVYI
GBV2YYYVL4ZQPX4EL7BPISQ6VI625SMZ7BPEIGPHLAIOGU43JXJWPEWE
2. Create an offer to issue the required amount of USD and then send the amount of collateral to your multisig account.
3. You will receive your issued USD to your regular Stellar address once we check the collateral is received.
4. Then purchase CENTUS using USD at any Stellar DEX and get double seigniorage (profit) for all the time you use USD.
EXAMPLE 1:
You have 10,000 CENTUS ≈ 100 USD.
Suppose you get seigniorage (dividend) 2 times a week in the amount of 1.5% each time, 3% in total.
Taking into account compound interest, this is approximately 12.6% per month.
After 1 month, your profit is 1,260 CENTUS or 12.6 USD.
Total monthly return is 12.6% or 12.6 USD per 100 initial USD — GREAT RESULT!
Now let’s look at the case if we used the 1st OPTION and issued 100 USD without discount:
You create 100 USD against 10,000 CENTUS ≈ 100 USD you have.
You buy another 10,000 CENTUS on Stellar DEX for 100 USD you created.
Now you have 20,000 CENTUS in total.
Given that you get 12.6% monthly, your profit on the amount of 20,000 will be 2,520 CENTUS or 25,2 USD.
After a month, you have a total of 22.520 CENTUS or 225.2 USD in your hands.
To pay back 100 USD and repay interest for using USD (for example, participants are willing to pay 0.5% every Tuesday-Friday, 4% or 4 USD for a month), you sell 10,400 CENTUS on the exchange and get 104 USD.
225.2 USD — 104 USD = 121.2 USD (12,120 CENTUS) — balance on hand after returning USD.
Total monthly profitability is 21.2% or 21.2 USD on the initial 100 USD — Almost 2 times higher profitability by using 100 USD you created!
OPTION 2:
USD issue amount exceeds collateral (discount).
The second option does not differ from the first, except that the amount of collateral, issued USD and CENTUS purchased on them are stored in your multisig account.
EXAMPLE 2:
Now consider the case if you used the 2nd OPTION:
You create an additional 200 USD at a 50% discount against the existing amount of 10,000 CENTUS ≈ 100 USD.
On Stellar DEX, you buy another 20,000 CENTUS for 200 USD you created.
Now, you have 30,000 CENTUS in total.
Given that you get 12.6% for a month, your profit on the total amount of 30,000 will be 3,780 CENTUS or 37,8 USD.
After a month, you have a total of 33,780 CENTUS or 337.8 USD in your hands.
To pay back 20,000 CENTUS and repay interest for using USD + 4% of the issued 200 USD, you sell 20,800 CENTUS on the exchange and get 208 USD.
337.8 USD — 208 USD = 129.8 USD (12,980 CENTUS) — balance on hand after returning USD.
Total monthly profitability is 29.8% or 29.8 USD per 100 initial USD — almost 3 times higher profitability by using the 200 USD you created! — EXELLENT RESULT!
More info about US Dollar Bill you can get here.
Risk Warning: The more discount you set, the greater the amount issued, the, correspondingly, higher the income received from seigniorage, but also the higher the risk of loss in case of a potential drop in the seigniorage rate.
