$SMPL
The decentralized unit of account
$SMPL is an algorithmic stablecoin with an elastic supply mechanism.
$SMPL is a price-stable but supply volatile cryptocurrency that targets the CPI-adjusted dollar. It is used as a unit of account and collateral asset.
The $SMPL protocol automatically increases or decreases the quantity of tokens in user wallets — such that the price of $SMPL reverts to 1 CPI-adjusted dollar.
- SOL - price changes with demand
- $SMPL - the # of units changes (such that each $SMPL = 1 USD)
Get $SMPL
$SMPL is a decentralized unit of account. Holders of $SMPL benefit from the growth of the network through supply rebasing.
$SMPL: 6XUyaPQ6sgrR5wrQYQv2ppcZznPDFfTgbkiUac8pqT3z
The rebase mechanism adjusts the token supply based on price data from trusted oracles.
Supply adjustments, termed "rebases", are applied by updating a global scalar coefficient of expansion every day at periodic intervals . This adjustment is applied universally to all addresses and doesn't require any transaction between peers.
Rebases only adjust supply if the price of $SMPL deviates from its target by > the deviation_threshold. This threshold is set by an adjustable hyper-parameter and is currently set at 5%.
Rebases are smoothed by a sigmoid curve that caps supply changes at its asymptotes. It has shaping parameters that determine: lower asymptote, upper asymptote, and the steepness of the curve (ie: growth rate). These parameters are currently set to -0.1, 0.1, and 3 respectively
The SMPLforth protocol's supply changes are proportional and non-dilutive. If a user owns Y% of the network before a rebase, the user will always own Y% of the network unless the user buys or sells more $SMPL.
Key Benefits of the $SMPL Protocol
Decentralized
$SMPL completely algorithmic. This means assets cannot be forcibly seized or frozen by administrators of the system.
Durable
The SMPLeforth protocol simply transfers the volatility of demand from price to supply. The price will consistently return to target price even through extreme market conditions.
Non-Dilutive
Supply adjustments proportionally increase or decrease the quantity of tokens in user wallets.For this reason the token is entirely non-dilutive. If you purchase 1% of the network, you will always own 1% unless you buy or sell more, regardless of supply adjustments.
Tracks CPI
$SMPL targets the 2025 CPI-adjusted dollar.This means contracts denominated using $SMPL remain stable on a purchasing-power-basis over long time horizons.
No Oracle Risk
Although $SMPL accepts a 24hr volume weighted price feed attacks on the oracle cannot result in the theft of funds. Applications built using $SMPL benefit from $SMPL's oracle safety.
Use cases
As a building block $SMPL enables the denomination of stable on-chain contracts without any reliance on centralized custodians or buyers of last resort. This lends itself to use cases including on-chain lending, on-chain borrowing, the creation of on-chain derivatives, and the creation of collateral for a decentralized stablecoin.