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Universal Stability: Depegging from Fiat

đź“– Unfamiliar terms? See the glossary for definitions.

The mechanism that powers H€ and HAu works for any measurable asset with a reliable oracle. Gold and Euro are just the beginning.

Why these restrictions exist: See Requirements for the compliance and price stability requirements that drive this design.

The Core Insight

BCH volatility is a problem. Fiat inflation is a problem. Solution: Stabilize BCH against real-world value instead of government currencies.

Traditional stablecoins: Peg to USD or EUR (still dependent on central banks).
Universal stability: Peg to commodities, energy, or purchasing power baskets (independent of policy).

How It Works (Any Asset)

Minting Restriction: Covenant Lifecycle Endpoints Only

Critical for compliance: H€/HAu tokens can ONLY be minted at specific moments in covenant lifecycle. This is not a general-purpose stablecoin—it’s a volatility protection mechanism for users who didn’t sign up for BCH exposure.

Two scenarios where minting occurs:

Scenario 1: Merchant Cashes Out Remittance (Successful Covenant)

  1. Merchant receives BCH from covenant (Elena → Carlos transaction)
  2. Wallet asks: “Protect from volatility?”
    • Keep BCH (accept volatility, potential appreciation)
    • Convert to H€ (Euro-stable value)
    • Convert to HAu (gold-stable value)
  3. If merchant chooses H-ASSET:
    • App checks pool availability (bull capital for that asset)
    • Creates standard AnyHedge contract:
      • Merchant shorts BCH vs ASSET
      • Pool provides long BCH
      • Duration: TBD (1 week, 30 days - see unknowns), auto-renewing
    • Mints H-ASSET tokens (CashTokens)
    • Sends to merchant’s wallet
  4. Merchant holds stable value relative to chosen asset
  5. Merchant has three liquidity options:

Liquidity Options for Token Holders

Option 1: Burn and Wait (Full Value)

Option 2: Sell to Liquidity Provider (Immediate, Small Discount)

Option 3: P2P Market (Negotiated)

Phase 0: Founder provides liquidity (Option 2 available)
Phase 1+: Crowdfunded bull pool, competitive LP market emerges
Natural LPs: Onboarders (earn VES, want H€ stability + spread income)

Why onboarders are perfect LPs:

If pool exhausted: Merchant keeps BCH (graceful degradation). Existing token holders unaffected.

Scenario 2: Covenant Aborts (BCH Drops >7%)

  1. Sender (María) funded covenant to send €100 to Elena
  2. BCH price drops >7% before Elena claims
  3. Covenant aborts to protect Isabel (seller) from excessive loss
  4. BCH returns to María’s wallet (exposing her to 7% loss)
  5. María’s wallet offers: “Protect from volatility? Mint H€ tokens instead?”
    • If MarĂ­a accepts and pool has capacity: Wallet mints €100 H€ tokens (backed 1:1 by AnyHedge)
    • MarĂ­a can still send to Elena using H€ (merchant accepts at cash-out)
    • MarĂ­a protected from volatility she didn’t sign up for
  6. If pool exhausted: MarĂ­a keeps BCH (fallback, accepts volatility)

Why this matters: María didn’t buy BCH to hold BCH—she bought it to send a remittance. H€ preserves the €100 value and allows remittance to complete.

What You CANNOT Do

These scenarios do NOT allow H€/HAu minting:

Only at covenant lifecycle endpoints (successful merchant cashout OR sender abort due to 7% drop).

Why This Restriction Matters (Compliance)

H€/HAu are NOT:

H€/HAu ARE:

Legal framing:

“H€ and HAu tokens are volatility protection instruments that allow Asgaya users to complete remittance transactions despite Bitcoin Cash price movements. They are not money, but rather claim tickets backed by verifiable on-chain AnyHedge contracts, mintable only at covenant lifecycle endpoints, redeemable for BCH at user’s discretion.”

This keeps Asgaya out of “issuing securities” or “money transmission” regulatory territory.

Phase 0: EUR & Gold

Token Pegged To Oracle Source Why Merchants Choose It
H€ (Heuro) Euro (EUR) GeneralProtocol, CoinGecko Familiar unit, easy mental math, quick VES conversion
HAu (How) Gold (XAU) LBMA, CME, COMEX Universal value, hedges ALL fiat inflation, 24/7 trading

Oracle Strategy (Primary + Fallback):

Both H€ and HAu require redundant oracle sources for reliability:

H€ Oracle Chain:

HAu Oracle Chain:

Note: HAu has one extra oracle dependency vs H€. If EUR-denominated gold oracles exist (needs research), HAu complexity reduces. See Price Discovery for detailed oracle research.

Capital allocation: €3K founder pool. Merchant velocity determines actual lock.

Future: Beyond Fiat (Phase 2+)

This is our fallback scenario, not our primary goal.

Our hypothesis: As BCH becomes tied to real-world commerce (remittances, merchant payments), price volatility will soften significantly. If this happens, the stability layer becomes less necessary—users will hold BCH directly instead of H€/HAu tokens.

However: There’s no evidence this will happen. BCH might remain volatile indefinitely. If so, we need a long-term stability solution that doesn’t depend on fiat currencies or centralized stablecoins.

Post-fiat tokens are the contingency plan if BCH never stabilizes. Instead of pegging to EUR/USD (government-controlled), we peg to real-world commodities, energy, and purchasing power baskets that governments cannot manipulate.

Phase 0: Test H€ and HAu (prove mechanism works)
Phase 1: Add more fiat-pegged options if demand exists
Phase 2+: Build post-fiat tokens if BCH volatility persists

Commodities (Raw Materials)

H-COPPER (Copper ore):

H-OIL (Crude oil):

H-IRON (Iron ore):

Energy (Physics-Based Value)

H-KWH (Kilowatt-hour):

Purchasing Power (Essential Goods)

H-BASKET (Venezuelan essentials):

1 token = Cost of basket:
├─ 1kg rice (spot price)
├─ 1kg beans
├─ 1L cooking oil
├─ 1kg chicken
├─ 500g sugar
└─ 1L milk

H-CPI (Consumer Price Index):

Why This Is Post-Fiat

Traditional finance:

Store value in USD → US Fed can inflate
Store value in EUR → ECB can inflate
Store value in VES → Venezuelan govt hyperinflates
Result: Savings destroyed by policy

Crypto (current):

Store value in BCH → Volatile (±20% monthly)
Store value in BTC → Volatile (±15% monthly)
Result: Can't plan, can't save predictably

Universal stability:

Store value in H-COPPER → Value = copper (govts can't print copper)
Store value in H-BASKET → Value = food (measures real purchasing power)
Store value in H-KWH → Value = energy (physics-based, not policy-based)
Result: Stable value independent of govt or crypto volatility

The paradigm shift: From “stable vs fiat” to “stable vs real-world value.”

Oracle Requirements

Easy Oracles (Existing Feeds)

Commodities:

Energy:

Fiat pairs:

Custom Oracles (Need to Build)

Essential goods baskets:

Regional indices:

How to build:

  1. Define basket composition (standardized quantities)
  2. Survey local prices (weekly web scraping or manual)
  3. Calculate weighted average
  4. Sign with oracle key
  5. Publish to AnyHedge-compatible feed

The beautiful thing: Start with easy oracles (gold, oil, EUR), add custom as demand proves.

Capital Requirements

Key insight: Pool size depends on merchant velocity, not token supply.

High Velocity (Trust-Building Phase)

Scenario: 10 merchants, €100/month each, weekly VES conversion
Volume: €1000/month
Lock: €250 avg (weekly turnover)
Pool needed: €3000 supports 120 merchants at this velocity

Lower Velocity (Trust Established, Hoarding)

Scenario: 10 merchants, €100/month each, monthly hold
Volume: €1000/month
Lock: €1000 avg (monthly turnover)
Pool needed: €3000 supports 30 merchants

Phase 0: High velocity (money tight, dump fast). €3K pool sufficient.
Phase 1: Crowdfund bull pool (€50K+) when demand proven.

Unified Pool Model

Phase 0 (€3K founder capital):

The bull pool approves which assets merchants can mint (H€, HAu) and dynamically allocates capital based on demand.

No split needed:

Why unified is better: Splitting pools (70% H€, 30% HAu) wastes capital. If all merchants want H€, the HAu allocation sits idle. Unified pool maximizes capital efficiency.

The magic: Same €3K backs multiple asset types via velocity. Not locked 1:1.

How Bull Pool Works (Capital Contribution & Profit/Loss Sharing)

Asgaya is permissionless: Anyone can contribute BCH capital to the bull pool and participate in profits (or losses).

Phase 0: Founder Pool (€3K)

Initial setup:

Economics:

Phase 1+: Crowdfunded Pool (€50K+)

When Phase 0 proves demand:

Natural participants:

  1. Onboarders: Earn VES, want H€ stability, buy tokens from merchants
  2. BCH holders: Earn yield by taking long positions + liquidity spread
  3. Merchants: Excess capital can be deployed to buy other merchants’ tokens

Profit/loss distribution:

Open Questions (To Document Later)

đź“ť PLACEHOLDER: This section needs expansion with:

Why onboarders are the killer app for LPs:

Network Effects

Phase 0 (Remittances):

Phase 1 (Multi-Corridor):

Phase 2 (Post-Fiat):

Phase 3 (Ecosystem):

Why Gold Oracle Is Best (For Now)

Comparing oracle reliability:

Asset Market Cap Trading Hours Price Sources Manipulation Risk History
Gold $12T 24/7 global LBMA, CME, COMEX, Shanghai Very low (massive market) Centuries
EUR/BCH ~$1B Exchange hours Kraken, Coinbase, Binance Medium (smaller market) Years
Oil $2T 24/5 NYMEX, ICE, Brent Low (large, liquid) Decades
Copper $200B 24/5 CME, LME Medium (smaller than gold) Decades
Electricity Varies Regional Spot markets High (regional, manipulation) Years
Basket N/A Manual survey Custom Medium (survey quality) New

Gold wins: Largest market, longest history, 24/7 trading, multiple authoritative sources, manipulation-resistant.

For Phase 0: H€ (familiar) + HAu (reliable oracle). Test both. Let data decide.

Legal/Regulatory Advantage

Where minting happens: Venezuela (merchant creates contract like making coupons).
Where Asgaya operates: Spain (bulletin board, information service).

If merchant in Venezuela mints H€/HAu:

This is why merchant-side minting matters: Jurisdiction arbitrage without dishonesty.

The Vision

Not: Replace USD with BCH (too volatile)
Not: Replace USD with USDT (fiat-dependent not trustless)
But: Replace fiat with real-world value units

The Asgaya user in the future:

No government can inflate copper supply. No central bank can print energy. No policy can devalue food baskets.

This is post-fiat economy. Universal stability is the mechanism. Asgaya is the bootstrap. Remittances are just the first use case.

Key Takeaways

  1. Same mechanism, any asset. H€, HAu, H-BASKET, H-KWH—all use pooled AnyHedge contracts.
  2. Start simple, expand gradually. Phase 0: EUR + Gold. Future: Baskets, commodities, energy.
  3. Gold oracle most reliable. 24/7 trading, centuries of history, $12T market cap.
  4. Capital scales via velocity. High merchant turnover = low pool lock. €3K supports 80 merchants initially.
  5. Post-fiat is the vision. Not “stable vs USD” but “stable vs real-world value.”
  6. Remittances bootstrap adoption. Merchants come for 0.5% spread, stay for H€/HAu stability, discover H-BASKET eventually.

The profound insight: We can literally depeg the world from fiat currencies, without the downside of volatile crypto assets.

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