What is Haven Protocol (XHV)?
The Haven protocol is intended to operate as a private, decentralized offshore bank, backing assets indirectly with its own native XHV coin. The protocol is built on Monero, a privacy-focused peer-to-peer digital currency that uses privacy-enhancing technologies to keep the financial information of users private. XHV token is used in this ecosystem alongside xUSD – a private stablecoin.
xUSD was the first private stablecoin released by the Haven Protocol. However, users can also create other commodities and synthetic assets called xAssets. They are created through the mint-and-burn mechanism, which requires users to burn XHV tokens in order to mint xAssets. These assets are untraceable, have storage of real asset-pegged value, and prices that correspond to the standard market.
Haven Protocol uses a price oracle to determine the XHV price and the prices of xAssets. How does it work? In essence, the oracle connects to several price sources and feeds this information to the network. This prevents manipulation of the XHV price or xAsset prices. Besides, the protocol also features a variety of other security measures that protect its integrity.
Who Founded the Haven Protocol?
The Haven Protocol crypto project started with two anonymous developers in January 2018. They planned to create a private stablecoin, but due to errors, they failed. However, another anonymous team, led by a developer who uses the pseudonym Dweab, took over the project and succeeded by releasing xUSD stablecoin in 2020. Other leading team members are Neac (Protocol Lead), Marty (Frontend Lead), and Pierre Lafitte (Product Lead).
Use Cases of XHV Tokens
As mentioned before, xAssets on the Haven Protocol are created using XHV as their base collateral. For example, XHV was used to launch a variety of private stablecoins, including xEUR (Euro), xGBP (Pounds), and others. It has also been used as base collateral for other assets, such as xAU (Gold), xAG (Silver), or even xBTC (a private asset that tracks the value of Bitcoin).
Basically, XHV can be used on the Haven Protocol as a value of exchange for any of the private assets listed on it. Besides, note that the XHV price and the price of the target asset correspond. This means that, for instance, if you wish to convert XHV to xUSD, the amount of xUSD you'll receive depends on the XHV price for that day.
Haven Protocol Tokenomics
Although the maximum supply of XHV coins is not set, at the time of writing this, the total supply is over 28 million. Since there's no max supply set, XHV tokens have an inflationary nature. However, the team employs halving to make Haven Protocol tokens more scarce and keep the XHV price relatively stable. How does it work? In essence, the protocol periodically reduces mining rewards for each new XHV block by half. Note that new XHV blocks are mined every 2 minutes.
