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This is not about FUD, it's about proper knowledge and risk management, while potentially making a lot of money. Buckle your seat belt, get comfy. The $XHV rocket is leaving the station.
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Lets understand what mint and burn is. $XHV is a crypto which is primarily used in the privacy of the users wallet. It only needs to see the open market, if you want to buy or sell it directly, which will not be required in the future, because of mint and burn.
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Once $XHV is in a users wallet, they have the option to hold XHV while it appreciates in value, or, they can convert their XHV into a stable coin called xUSD within the wallet, without the need for an open market. It's all done by burning the XHV at market cost.
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The market cost is derived from oracles feeding the average market price to the wallet, this then converts the amount of $XHV based on that price, into $xUSD, a private algorithmic stable coin, by burning those XHV out of existence.
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If $XHV is worth $1.00 at the time of burning. Then 10 XHV would equal 10 $xUSD. If XHV price was at $5.00, then burning 10 XHV would mint 50 xUSD. Since you are burning XHV to mint xUSD within your own wallet, there is infinite liquidity, because it simply moves the value.
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$50 dollars worth of $XHV becomes $50 dollars worth of $xUSD. No open market required. 100% Private. Only you know the conversion took place, because $XHV has monero grade privacy, it cannot be traced back to you. What is more cool than this?
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Now, to prevent bad actors and manipulators, there is a fee structure that must be obeyed. Minting and burning is not supposed to be a tool to make money. It is mean to be a tool to save it. It's meant to provide a private stable offshore savings account. $XHV
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The fee structure exists, to make it difficult to mint back to $XHV quickly. Since the supply of XHV is dynamic, bad actors could manipulate the mint and burn ability, based on $XHV market swings, to mint XHV and flood the supply. The fee structure, prevents this.
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The fee structure will evolve over time, as needed. Right now, the biggest hurdle $XHV faces, is liquidity on the open market. Once word gets out of the brilliance of the @HavenXHV Haven Protocol, there will be more demand for XHV and it's stable coin xUSD.
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However, the Haven Protocol doesn't just offer a single stable coin, in time, it will offer an entire ecosystem of stable coins, tied to many currencies, and also, other assets like xGold xSilver, or any popular asset in demand, including other cryptos like xETH or xBTC.
$XHV
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However, it will only be $XHV and $xUSD that will have mint and burn capabilities. So to participate in other xAssets, you will need to have xUSD. This puts a spotlight on xUSD and will create demand for xUSD.
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This is the second hurdle facing the Haven protocol. Creating an open market with ample liquidity for $xUSD. Luckily, they are aware of this problem, and have partnered with @thorchain_org to create liquidity pools for both $XHV and $xUSD.
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Remember, to create $xUSD, $XHV must be burnt. So by creating demand for xUSD, there is automatic demand for XHV. The more xUSD created, the lower the supply of XHV in circulation. The opposite is true, the more xUSD burnt, the more XHV is in circulation.
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This is why liquidity is so important for both $XHV and $xUSD.When both coins have a stable real world exit, there will be no need to mint back xUSD to XHV,and it will cost less to sell it on the open market,than it would to use the mint and burn capability within the wallet.
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So as more xAssets come into existence, this will provide incentive for many people to mint xUSD, to purchase assets they may not be able to hold in any other way, such as xGold, tied to the market price of real gold. Or xAmazon,tied to the market price of amazon stock. $XHV
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It creates the ability for anyone to participate privately, in public assets. It's not just an offshore bank account, it's an offshore stock, crypto and FX market. All powered by the demand for $xUSD, which is only currently obtainable through $XHV itself.
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At least until $xUSD is liquid on open markets. Further still, xUSD can be sent to and from your wallet, to others wallets, in complete privacy. So you are not walled into your wallet, you are in control of all of it. $XHV
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The biggest risk of it all, is during big market swings in $XHV price, where people attempt to use the mint and burn ability to increase their XHV stash, rather than sell their xUSD for XHV on the open market. They have done everything they can to prevent this.
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Outside of that, $XHV is one of the single greatest innovations to not only crypto, but to money itself, since bitcoin. Rome was not built in a day, and as the XHV ecosystem is built, people will awaken to a new world of privacy and possibility.
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As I said, buckle up, the $XHV rocket is going to leave the station, with or without you. As always, only invest what you're comfortable with, as there's always risk. No risk, no reward. However, XHV certainly looks worth that risk. Don't just take my word for it... DYOR.
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