Introduction

What is Tai Chi Protocol

Taichi Protocol is the first algorithmic stablecoin protocol on Arbitrum which is deeply optimized and comprehensively innovated on the basis of the existing algorithmic stablecoins. TAI is the name of the stablecoin, the goal of which is to create a decentralized stablecoin platform with fair distribution, high liquidity and scalability.

Based on FEI, Ellipsis and other excellent stablecoin projects and some of their advantages, Taichi Protocol deeply optimized its algorithmic design and created a new set of algorithmic stablecoin protocols. Taichi Protocol's direct incentive approach presents a promising improvement over existing stablecoin models (i.e. fiat-collateralized, crypto-collateralized and non-collateralized).

The core principle of the Taichi Protocol is to maintain the price of the ETH/TAI trades closely to the price of the ETH/USDC by peg the trading pair of ETH/USDC, so that the price of the TAI can be stabilized at 1 USD.

PCV (Protocol Controlled Value) mechanism is used to provide liquidity support. The PCV fund is raised through Genesis for market making and value backup. It stabilizes the price based on punishment, reward and redemption mechanism.

At the same time, Taichi Protocol has made some improvements to TAI Protocol in the design of economic model, such as optimization in the Genesis stage, liquidity mining and redemption mechanism.

As for the future roadmap, TAI Protocol will build its own ecosystem, major focusing on cooperation with on-chain derivatives trading and NFT oriented projects. At the same time, we intend to build a multi-chain ecological team, and will be compatible with more public chain ecology in the future, so as to increase the application scenarios of TAI.