Network asset conversions are currently suspended. All the details can be found here
To understand how capital flows through the Haven network we’ve put this short guide together to explain. The currencies are all interconnected and depend on each other to provide utility and value to users and the network.
There are essentially three currency types in the network and these will be described below:
XHV– Haven’s base currency can be thought of as the network collateral. It is volatile in nature where the price of 1 XHV is determined by market supply and demand. It is the ONLY way that all other assets within the network can be created.
xUSD– This is the network gateway currency and is a synthetic representation of the US Dollar. Once you own XHV you can convert it to xUSD at any time to provide a stable store of value. Holding xUSD then allows you to convert (mint) that to any other of the network’s supported xAssets such as xGOLD, xCNY etc.
xASSETS– All other assets in the network are known as xAssets and can only be created by converting xUSD. Virtually any asset could be added to the network, as long as the protocol is able to take a reliable, decentralised price feed then it can be supported.
So, the flow of capital within the Haven network is this:
XHV ↔ xUSD ↔ xASSETS
Why go through xUSD?
There are a few reasons to set the network up this way:
- The US Dollar is the world’s reserve currency and is likely to remain so for the foreseeable future. It touches the vast majority of all global transactions and many commodities, including Oil, are priced in USD.
- Using a currency that the majority of people recognise and understand makes it easier for users to value their portfolio and calculate conversion rates.
- It simplifies parts of the codebase without having to rely on multiple exchange rates for any single transaction improving resilience and reliability.
- It allows users to trade all other xAssets against the USD effectively providing a range of recognised trading pairs without having to exit the network.
NOTE: If at any point in the future the US Dollar loses its global reserve status it will be a relatively simple task to pivot the network to any alternative that is deemed fit for purpose.