ABI is used throughout the ABACHI protocol. Keep in mind that
Abachi is two pieces:
2. Core services.
ABI provides a token to incentivize and use the services offered by Abachi core. As it does not have an intrinsic value, it derives a value based on the OHM it holds and how useful the core services are.
As proposed 100% of the fees generated by the core services will buy back and burn the token supply further incentivizing users to provide these services.
Security & Decentralization
ABI provides security to the entire protocol by aligning those who have a higher stake in the system to have a much more role in day to day function of the protocol. It does this by ensuring that those who want to be a part of the governance can lock their tokens for a longer term. The protocol rewards them for this via passive emissions (see emissions section) and via rebasing. Locked ABI cannot be removed until the lock expires. This adds to decentralisation to the protocol and is key to ensure the protocol changes and core services are always aligned with the goals Abachi wants to achieve.
Abachi will launch accredited lending pools for borrowers and lenders. Currently in the DeFi space most protocols incentivise these pools to attract liquidity. This incentive will also be paid by Abachi via ABI. The DAO will vote and decide on the emissions for these.
Discourage pool hoppers to try and leech yields based on rates only and provide liquidity for a longer term.
Bootstrap enough liquidity to ensure lending and borrowing can function correctly without any slippage.
Allow longer term actors in the ecosystem to acquire ABI to be able to launch these lending pools as a stake.
Multi Wallet Smart Chains
One of the core services Abachi will launch first is the smart wallet product. This product allows users to pay invoices, bills, and any other payment via front-end partners using a simple click to pay. To make this as seamless as possible the wallets are directly integrated into the end-users apps. Abachi handles any network fee or transaction fee on the backend by automatically converting ABI to the local network being used.
e.g. If a user with a smart wallet has their digital assets on Polygon and wants to make a payment to another user who is using Ethereum. The smart wallet will calculate the $ amount the payee needs to make. In the backend it will automatically convert ABI to the local fee for transaction (on-chain) so that to the user it will appear as a single transaction. This way Abachi allows interaction between multiple chains & protocols.
ENS & Other business transactions
We understand that to bring business transactions on-chain, the user experience needs to be simplified considerably. A user of the Abachi core services will always denominate in $ amount for any service. e.g. ENS business registrations. Each transaction is sent back via the SDK to the relevant chain it belongs to. Partners only need to hold ABI in their treasuries, making their use much simpler. Any fees for using these services will be deducted automatically from the ABI they hold. They can also hold sABI and the partner pool for paying these fees will automatically rebase also.
Minting new tokens & Staking
Since Abachi is an open source protocol and aims to increase transparency as much as possible, there are two treasuries that the protocol manages. Money raised in pABI sales go towards the initial setup of the protocol and these have been kept very low on purpose.
Sales of aABI tokens go directly into the main treasury allowing people to stake their token to earn staking rewards or mint new tokens by depositing assets. The function of the Abachi treasury is to help it grow. As demand for the token grows, the treasury grows and can expand the system as much. The growth of the protocol is directly related to how well the main treasury is doing. Read more about treasury and use of those funds here.
Staking provides three core functions:
- Increase liquidity (read more here)
- Provide minimal value to function (read more here)
- Provide insurance and compliance services to the protocol (read more here)
Staking is designed to be based on the rebase model and will provide early adopters with much higher rewards.