CESTA, the token
Last updated
Last updated
CESTA is a decentralized, Algorithmic based, reserve currency. On a high level, the token has 4 axioms: Every CESTA token has a Intrinsic Value (IV) backing the token. While there can be more assets backing the token, there is a minimum value associated with the token. Hence, there is a price floor, but no price ceiling of the protocol. The CESTA token can only be minted or burned by the protocol. The protocol serves as the "decentralized, central bank" of the protocol, with the ability to expand and constrain supply. When CESTA is trading above the IV, the protocol expands supply, and sells CESTA to the market. Because the protocol can create more supply, as long as there is the IV backing the token, it makes profits on the spread between IV and market price. When CESTA is trading below IV, the protocol buys and burns CESTA, contracting supply. Because it buys the token under the intrinsic value, the protocol makes a profit on the spread.
pCESTA is exclusive, whitelist only and non-transferable options token that can be burned and converted to CESTA. It is used as a method of initial fund raising as building a protocol requires a significant amount of capital. The team, advisors, and partners who receive pCESTA are constrained by a supply share factor so that all pCESTA are incentivised for the long term sustainability of the protocol. The supply share factor indicates the maximum amount of pCESTA can be redeemed relative to the latest circulating supply. For example, a 10% supply share factor means if there is a circulating supply of 100m CESTA token, the pCESTA holder can only redeem 100m * 10% = 10M pCESTA.
