Haven Protocol: The Future Stablecoin King? [free]

Introduction

Haven Protocol is a decentralised private network to store and transfer digital currencies based on Monero, the privacy focused crypto currency. Haven is a hard forkof Monero so it inherits all Monero’s privacy and anonymity features. On top, Haven developers have added a functionality to mint/burn other assets such as stablecoins and commodities.

XHV is the unit of account of Haven Protocol and is secured via Proof of Work. The first private stablecoin developed is the xUSD.

The team have great ambitions. Haven Protocol aims to become the protocol of Private DeFi and build a platform à la Synthetix but with the privacy and anonymity of Monero.

XHV coin is at $2.3, almost up 10x in couple of months but still with a tiny market cap of $30M USD.

The mainnet is scheduled for July 20.

So is it still a strong buy and undervalued? or should you avoid it?

A brief history of Haven

The protocol was founded in 2018 and the original idea was to build a dual coin blockchain (XHV and XUSD the private stablecoin).

End of 2018, the developers went missing and no news were given. They were exit scamming the project.

Given strong community response and outrage, a new team took over and restarted the project.

To date, the situation has never been really crystal clear about what happen. However, the new team has worked on the project to build the first private stablecoin. The main net launches in July 20, in 15 days.

Our analysis

When we analyse a project, we take a look at the project use case to assess its long term viability. We also do not dismiss any good pumponomics for a short term speculative price appreciation as well.

In Haven’s case, it has valid use case: build a private stablecoin and then a DeFiecosystemwhich is very ambitious outside Ethereum and on its own. It also has a good pumponomics narrative: Privacy + Decentralised Finance. Wow.

Here is our analysis, which might surprise you.

Stablecoins & Privacy

Stablecoins became the hottest topic in crypto not so long ago. It started with Tetherand Bitfinex and their collateralised approach, meaning one USDT shall be collateralised *in theory* with one US dollar. There has been numerous theories that it is not collateralised at 100%.

We have also seen other players entering the market such as Coinbase with its USDC stablecoin, Binance and BUSD, and so on. 

In the same time, the team behind Maker developed another model with the DAI stablecoin. DAI is the first decentralised stablecoin which is not backed by one US dollar for one DAI. Instead it is maintained algorithmically via smart contracts via a mechanism of lending and borrowing. You have to deposit collateral (mainly ETH so far) into the system to generate DAI and can also lend your DAI to get paid some interests. The peg is maintained via the interest rate resulting from supply and demand for DAI.

On the contrary, privacy coins have been very popular one or two years ago. Not so much recently. However, we would have believed that the Zcash, Monero, Zcoin teams would at least try to build a private stablecoin, which can be secured with their PoW network. However, none of them did.

Doing it would have certainly increased their utility. Imagine holding some ZEC or XMR for the privacy and being able to convert them into a private stable XMR or ZEC USD when you want to pay for something.

That is where Haven came into play with the xUSD, the first private stablecoin.

Our full analysis is available here, for our subscribers only.

Thanks for reading

Secret Salsa

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