SVN (Savanna) Finance, what is it? Here is an algorithmic stable coin platform with its main token SVN currently pegged to the value of 1 MMF.
SVN (Savanna) Finance, an algorithmic stable coin platform with this main token SVN currently pegged to the value of 1 MMF. An Algorithmic Stable Coin (ASC) is a non-collateralized stablecoin tailored for improving price stability.
The beauty of algorithmic stable coins is that they are much more capital efficient than their collateralized cousins.
Savanna Finance’s full focus is to build a true cross-chain algorithmic stable coin protocol that is stabilized with true use-cases all around the DeFi Ecosystem.
The first algorithmic stablecoin on Cronos , pegged to the price of 1 MMF via seigniorage.
SVN token:
The SVN algorithmic token serves as the backbone of a rapidly growing ecosystem aimed towards bringing liquidity and new use cases to the MMF Ecosystem.
The protocol’s underlying mechanism dynamically adjusts SVN’s supply, pushing its price up or down relative to the price of MMF.
This protocol adopt a three token structure: SVN, MSHARE, MBOND.
- Savanna Token (SVN): the algorithmic token pegged to MMF.
- Meerkat Share (MSHARE): which holders can claim SVN inflation when the network expands.
- Meerkat Bond (MBOND): which can be purchased when the network is in contraction and can be redeemed for SVN when the network comes to its deflationary phase.
Why launch SVN?
SVN Finance is a protocol that supports this notion above, and hence seeks to support this goal, with the main token of Savanna.
This token acts as a mirror-ed asset to the MMF token, where 1 SVN equals to 1 MMF in value. The idea of a mirror-ed asset for MMF is going to be a very important one, because the introduction of the MMF protocol coupled with huge launchpad burns will rapidly reduce circulating MMF.
This will result in a supply squeeze where MMF tokens will experience huge price bumps. While this is ideal for token holders, this will also present challenges, because there will now be huge volatility, and thus will dissuade potential investors from joining our ecosystem.
What makes SVN different from other algorithmic tokens?
Here is the answer in a few words from the team behind the project:
Unlike previous algorithmic tokens, this token is not tied to a stable currency – rather, it is tied to MMF. Also, unlike other projects, we are able to leverage our existing MMF ecosystem, which allows us to have more control over how the mechanisms between these two tokens interact.
The team believes in the full potential of MM Finance, and is fully committed to bringing value to and leveraging the future growth of MMF.
One of the main shortcomings of past algorithmic tokens has been the lack of use cases, leaving no good reason for anyone to want to use or hold them. In order to maintain parity over the long term, the MM team will focus on innovation around improved functionality and use cases.
Direct access to the official website
