Treasury Backing

Transparency is the key to true Decentralisation

CHRF token is fully backed by its treasury, which is the total number of stablecoin in treasury corresponding to one CHRF token. We define RFV as the risk free value in the treasury per CHRF token, and TAV as the total asset value held by treasury per CHRF token.
We define RFV as the risk free value in the treasury per CHRF token, and TAV as the total asset value held by treasury per CHRF token.
RFV=Total Stablecoins in TreasuryTotal CHRF SupplyRFV = \frac{Total \:Stablecoins \:in \:Treasury}{Total \:CHRF \:Supply}RFV=TotalCHRFSupplyTotalStablecoinsinTreasury​
TAV=RFV+Total Treasury InvestmentsTotal CHRF SupplyTAV = RFV + \frac{Total \:Treasury \:Investments}{Total \: CHRF \:Supply}TAV=RFV+TotalCHRFSupplyTotalTreasuryInvestments​
Bond PriceSTB=TAV+PremiumSTBBond \:Price_{STB} = TAV + Premium_{STB}BondPriceSTB​=TAV+PremiumSTB​
Thus after every successful bond sale, treasury backing will be
TAVnew=TAVprev+PremiumSTB−FeesTotal CHRF SupplyTAV_{new} = TAV_{prev} + \frac{Premium_{STB} - Fees}{Total \: CHRF \:Supply}TAVnew​=TAVprev​+TotalCHRFSupplyPremiumSTB​−Fees​
This is demonstrated in the below diagram
TAV and RFV VS time GRAPH
Since Premium will always be kept positive, it will ensure that TAV will always increase from bond sales, irrespective of the market conditions.

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Last modified 9mo ago