Flat MoneyPrice

(UNIT)

Flat Money (UNIT) is a decentralized, delta-neutral flatcoin specifically engineered to counter inflation. Unlike traditional stablecoins that maintain a peg to a specific fiat currency, UNIT's primary objective is to preserve and potentially grow its purchasing power over time. It aims to offer users a stable asset that hedges against the eroding effects of inflation, making it a distinct category within the broader digital asset ecosystem.

A flatcoin, such as UNIT, is a novel type of stable digital asset designed to maintain its purchasing power against inflation, rather than being pegged directly to a fiat currency like the US Dollar. While stablecoins aim for price stability relative to a chosen fiat, flatcoins target stability in terms of real-world purchasing power, adjusting its value to reflect changes in inflation. This fundamental difference positions flatcoins as a potential hedge against currency debasement.

The Flat Money protocol enables users to deposit Liquid Staking Derivatives (LSDs), like Rocket Pool ETH (rETH) on Base or Ether.fi's wrapped ETH (eETH) on Arbitrum, as collateral to mint UNIT tokens. UNIT is designed as a yield-bearing asset, generating returns from various protocol activities. These include trading fees, liquidation fees, and funding rates derived from a perpetual futures market. These accrued yields are directed back into the shared liquidity pool, thereby continuously enhancing the underlying value backing UNIT, aiming to outpace inflation.

Flat Money (UNIT) is backed by a diversified and decentralized basket of Liquid Staking Derivatives (LSDs). Specifically, users can utilize assets such as Rocket Pool ETH (rETH) when operating on the Base blockchain network. Alternatively, on the Arbitrum network, Ether.fi's wrapped ETH (eETH) serves as eligible collateral. This strategic choice of collateral leverages yield-bearing, liquid assets, contributing to the protocol's stability and decentralized nature.

Yes, holding UNIT offers an opportunity for its holders to earn yield. The protocol is structured to provide a steady increase in value for UNIT holders, effectively hedging against market volatility. The yield generated for UNIT holders originates from several sources within the Flat Money ecosystem. These include a portion of trading fees, liquidation fees from the protocol, and funding rates accumulated from its integrated perpetual futures market. This mechanism aims to provide a competitive return for those holding UNIT.

While innovative, Flat Money (UNIT), like other flatcoins and algorithmic stablecoins, faces inherent risks. A primary concern is the long-term viability and the untested nature of its inflation-hedging mechanisms in various market conditions. Additionally, the protocol’s contract owner operates through a proxy contract, which has the technical capability to make significant code changes. These potential changes include disabling sales, altering fees, or even minting new tokens. Users are therefore advised to exercise caution and conduct thorough due diligence, acknowledging these structural flexibilities.