What is Geminon?

Stablecoin types

The first attempts to create stablecoins date back to 2012 (Mastercoin). Tether, the largest stablecoin issuer today, was created in 2014. The number of stablecoins in existence nowadays is counted by tens.

  • Centralized: The common characteristics shared by all the currencies of this group is that they are issued by a traditional company which keeps reserves, in fiat currency and other assets of equivalent liquidity (such as treasury bills), for a value equal to or greater than the face value of the stablecoins issued, and that all are censurable, that is, they incorporate blacklist functions in their smart contracts that allow the issuer to seize the assets of any user at will. Examples of this type are Tether’s USDT, Circle’s USDC and Paxos’ BUSD.
  • Algorithmic: Under this category are those protocols that do not use any source of value external to the protocol itself to maintain the peg of their stablecoin, which is why from a more formal perspective they are called endogenous collateral stablecoins, in the event that they use a system of seigniorage shares, or implicit collateral stablecoins, if they use a rebase or bonding system. Examples of this type of stablecoins can be found in Ampleforth (AMPL), Neutrino (USDN), Haven (xUSD), Beanstalk (BEAN) and the infamous Terra UST.
  • Collateralized: This category includes all stablecoins that use external sources of value as collateral. These sources can be stable (usually other centralized stablecoins), floating (other cryptoassets) or mixed, and depending on the proportion of value required to mint them, they can be overcollateralized or fairly collateralized. Some are issued in the form of debt, whereby the issuer pays interest to the protocol for the minted currency. The best known examples of this category are Maker’s DAI, FRAX, Liquity (LUSD), Magic Internet Money (MIM) and FEI.

The source of the Geminon stablecoins value

If the previous classification is taken strictly, the Geminon protocol would fall into the category of algorithmic, since its stablecoins are minted only from an internal asset, the GEX token. However, this would be inaccurate as the GEX token is not the actual source of value in the protocol.

  • It provides GEX token holders with direct exposure to stablecoin issuance, which is the primary advantage of algorithmic protocols based on seigniorage shares.
  • It has unlimited scalability. The lack of scalability is the main problem posed by overcollateralized stablecoins.
  • It is more decentralized than most collateralized or over-collateralized stablecoins, as it has less need to include off-blockchain assets to hold the price anchor.
  • It is able to hold the peg in any market condition as effectively as centralized stablecoins, avoiding the risk of a “death spiral” of algorithmic stablecoins.

Genesis Liquidity Pools as a source of value

GLPs constitute an algorithmic mechanism of implicit collateralization.

So, what is Geminon?

Geminon is the best attempt to date to get the perfect stablecoin. Its unique design gives it a better balance between decentralization, security, and scalability than any other stablecoin out there.

Important announcement

The Geminon protocol will be launched in the next few days. Given the authentic crypto nature of the project, there have been no presales or private investors, nor does the team own any percentage of the supply. It will be a fair launch. This means that the GEX token will start from a market cap close to zero, just like Bitcoin back in the day. Do the math.

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