Issue US Dollar Bill (USD), buy CENTUS and Get More Profit

If you already have CENTUS, you can use it to issue USD (up to 3 times more than available CENTUS amount allows), then buy CENTUS for the whole amount of USD and, thanks to that, receive more seigniorage (dividend) on this increased CENTUS amount.

Seigniorage Profit Growth

Based on US Dollar Bill (USD) Issue

HOW YOU BENEFIT FROM ISSUING USD:

Issuing USD, you increase your CENTUS amount by 2-3 times. Accordingly, your profit from seigniorage increases proportionally, while all your expenses are the interest you pay for using USD.

All funds remain under your control, you simply can not withdraw assets from your multisig account until you repay USD.

If you create USD against CENTUS collateral, you will at least receive doubled amount of dividends (seigniorage) during the entire period of using USD.

You just get profit from seigniorage 2 times a week paying an interest for using USD from these income. Generally, this interest is much lower than CENTUS seigniorage.

When you want to repay all or part of your USD, you simply sell the required amount of CENTUS for USD at any Stellar DEX from your multisig wallet (we always confirm transactions in both directions).

After that you send USD to a special Stellar address specified in the repay form and in your issue request. Once the USD is repaid, you can send all the assets from your multisig account to your regular Stellar address along with the accumulated profit.

In addition, you can withdraw the accumulated profit from your multisig wallet twice a week.

HOW SHOULD I DO TO ISSUE USD:

To issue USD please login to your CENTUS Dashboard and click the USD Credit button.

Only 3 steps are needed to issue USD secured by CENTUS as collateral:

OPTION 1:The amount of collateral 10,000 CENTUS is equal to the 100 USD issue amount.

1. Create an offer to issue of 100 USD and then send 10,000 collateral CENTUS to your multisig account.

2. You will receive your issued 100 USD to your regular Stellar address once we check the collateral is received.

3. Then purchase 10,000 CENTUS using 100 USD at any Stellar DEX and get double seigniorage (profit)for all the time you use USD.

EXAMPLE 1:

Let’s look at the case when you issue 100 USD – the amount of collateral is equal to the USD issue amount.

1. You have collateral 10,000 CENTUS (approx.100 USD) and create 100 USD.(Suppose you get seigniorage (dividend) 2 times a week in the amount of 1.5% each time, 3% in total. Taking into account compound interest, this is approximately 12.6% per month).

2. You buy another 10,000 CENTUS on Stellar DEX for 100 USD you created.

3. Now you have 20,000 CENTUS in total.

4. Given that you get 12.6% monthly, your profit on the amount of 20,000 will be 2,520 CENTUS or 25,2 USD.

5. After a month, you have a total of 22,520 CENTUS or 225.2 USD in your hand.

6. To pay back 100 USD and repay interest for using USD (0.5% every Tuesday and Friday = 4% or 4 USD for a month), you sell 10,400 CENTUS on the exchange and get 104 USD.

7. 225.2 USD – 104 USD = 121.2 USD (12,120 CENTUS) – balance on your hand after returning USD.

8. Total monthly profitability is 21.2% or 21.2 USD on the initial 100 USD – Almost 2 times higher profitability by using 100 USD you created!

OPTION 2: USD issue amount exceeds CENTUS collateral.

The second option does not differ from the first, except that the amount of CENTUS collateral, issued USD and CENTUS purchased on them are stored in your multisig account and your profit increases almost 3 times.

EXAMPLE 2:

1. You have collateral 10,000 CENTUS (approx.100 USD) and create an additional 200 USD.
2. On Stellar DEX, you buy another 20,000 CENTUS for 200 USD you created.
3. Now, you have 30,000 CENTUS in total.
4. Given that you get 12.6% for a month, your profit on the total amount of 30,000 will be 3,780 CENTUS or 37,8 USD.
5. After a month, you have a total of 33,780 CENTUS or 337.8 USD in your hand.
6. To pay back 20,000 CENTUS and repay interest for using USD + 4% of the issued 200 USD, you sell 20,800 CENTUS on the exchange and get 208 USD.
7. 337.8 USD – 208 USD = 129.8 USD (12,980 CENTUS) – balance on hand after returning USD.
8. Total monthly profitability is 29.8% or 29.8 USD per 100 initial USD – almost 3 times higher profitability by using the 200 USD you created!

USD Issue Terms:

1. You need a multisig account to issue USD. How to set up multisig account look here.
2. You can issue USD for an amount of 100-200% of available CENTUS collateral.
3. The fee for the issue of USD is 1% of the issue amount.
4. The maximal time limit for using USD is set to 1 month.
5. The floating interest rate for using USD determined by the BILLEX network members is paid at the time of repayment (0,5% for each seigniorage accrual during the test period).

Login and issue US Dollar (USD)

Risk Warning:The more percentage you specified, the greater the amount issued, the, correspondingly, higher the income received from seigniorage, but also the higher the risk of loss in case of a potential drop in the seigniorage rate.