Havven Interview w/ CEO Kain Warwick - How Stablecoins Work

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Havven is an ERC-20 token. Together with Nomin, a Stablecoin, the Havven network is trying to solve one of the biggest challenges in crypto: stability.

The Havven ICO proposes a decentralised payment network built on a stablecoin to capture all the benefits of a permissionless system, while also eliminating volatility. Havven plans to achieve price stability by pegging the value of the token to fiat, while simultaneously introducing a decentralized collateral system to provide confidence in the value of the tokens.

Those who use the stablecoin pay fees to those who collateralize the network, compensating them for the risks of providing collateral and stability. Collateral providers in turn control the money supply, and fees are distributed in proportion with each individual’s contribution to stabilisation. Havven rewards suppliers of stability and charges those who demand it.

Underlying this structure is a two token system:

Nomins– a stablecoin with a floating supply and price measured in fiat. Denominating the value of the nomin in an external fiat currency means that stability is relative only to that currency, which will initially be the US dollar.

Havvens– a collateral token (ERC-20) with a static supply. The market capitalization of havvens (HVV) reflects the aggregated value of the Havven platform. The havven token is a decentralised asset, with an intrinsic value derived from the fees generated in the network it has collateralized.

Ownership of havvens grants the right to issue a value of nomins proportional to the dollar value of havvens placed into escrow. Issuance of nomins requires a greater value of havvens to be escrowed in the system (with a collateral ratio of 1:5), providing confidence that nomins can be redeemed for their face value even if the price of havven falls.

In short, the collateral underlying the Havven platform, represented by the havven token, is derived from the the value of the system itself.

Havven have an alpha model which users can access to test various economic scenarios on the Havven platform. This is especially beneficial in demonstrating the viability of the token economics set forth in the whitepaper, as they are novel and have yet to be implemented in other systems.

Additionally, Havven have already released their code for Havven platform v.1 for independent audit by two separate organizations. While the alpha model demonstrates the viability of the ecosystem overtime, it is still a model and provides no guarantees.

While no explicit roadmap to adoption has yet been released, in a Telegram chat with CEO Kain Warwick, he outlined a multi-faceted approach that targets both payment aggregators and partnerships with exchanges.

To this end, parent company Blue Shyft maintains a working relationship with all Australia based exchanges through their retail network, which allows cash purchases of Bitcoin and other cryptocurrencies. Having successfully established a working infrastructure with exchanges for purchasing cryptocurrency, there is a greater opportunity to implement the platform via these existing relationships.