A Structural Playing Field.
Version 0.0.01 | Community Draft
Stables is an autonomous money system where individual self-interest drives system stability. The balanced state is a natural outcome: a structural equilibrium where every participant finds their optimal choice aligned with our collective resilience. Each participant still follows their own incentives; taken together, those interactions across the network are what keep steering the system toward its overriding aim: preserving the pegs.
The Interaction Matrix
| Actor | Objective | Provision (Structure) | Contribution (System) |
|---|---|---|---|
| Ambassadors | Growth & Sovereignty | The 16 Big Mac® Economy. | Merchant Support: Onboarding and technical assistance for the foundation. |
| Merchants | Sovereignty | Core Values (Secure, Pseudonymous, Unstoppable) + Ultra-low fee. | The Foundation: Aligning with the unstoppable future of value. |
| Shoppers | Privacy & Power | 100% Self-custody. | Utility: Every spend reinforces the sovereign network. |
| Speculators | High-leverage Profit | Equity via xMinima. | Strategic Buffer: Capturing market upside with high expected returns. |
| Investors | Yield & Safety | Revenue via Coverage Fund. | Second Shock Absorber: Providing the capital buffer. |
| Arbitrageurs | Risk-free Efficiency | Direct Settlements. | Precision: Automating parity across all horizons. |
| FX Traders | Global Mobility | Native Pair Trading. | Regional Flow: Connecting hyper-local economies. |
The matrix is not exhaustive. As the economy grows, further roles can appear (for example lenders and borrowers, and other specialised participants). They still sit inside the same playing field: individual incentives interacting toward the same structural goals.
The Structural Proof of the Peg
Stability is not a promise; it is an enforced equilibrium. The Stables peg is maintained by the immutable interaction of four primary actors, each mechanically incentivized to maintain parity:
As long as the playing field stays frictionless, investment opportunities stay fully open. The gunpowder is, in practice, limitless: there is no fixed ceiling on how much additional capital can arrive to reinforce the structure whenever economics justify it.
The Merchant Anchor
Merchants are the foundational anchor. Rooted in the principles of a free market and liberty of choice, they are logically better off accepting payments at 1:1 parity because it removes institutional gatekeepers and zero middleman fees. By acting as local Exchange Bureaus (Fiat-to-Stables), they provide physical liquidity through direct local exchange.
The Speculator Filter
xMinima holders capture significant market-driven upside. As the primary risk-sharers, they maintain a high-leverage position with a positive expected return, absorbing volatility to protect the senior tranche.
The Investor Bedrock
Investors provide the capital depth necessary to handle large-scale economic fluctuations. By capitalizing the vault through committed Stables to the coverage fund, they ensure the protocol maintains a robust collateral ratio for all participants.
The Arbitrageur Regulator
Arbitrageurs enforce market discipline through risk-free efficiency. By closing internal price gaps across available protocol paths and time horizons, they ensure the system remains in a constant state of mechanical alignment.
The result: Maintaining the peg is always the most profitable path for all participants.