TAI Stablecoin

TAI Token

TAI is the pegged stablecoin produced by Taichi Protocol, following the ERC-20 standard. Its supply is uncapped. Minter and Burner contracts control its issuance, via bonding curves and trading incentives. The TAI token exhibits certain non-standard ERC-20 functionality, but only on a subset of transactions. There are dynamic incentives overlaid on transfers involving incentivized addresses. An incentivized address is a contract that TAI Protocol wants to incentivize certain TAI behavior. Incentivized addresses have an associated incentive contract. If a user sends TAI to an incentivized address, their remaining balance will be affected by a mint or burn incentive. The primary incentivized address in TAI Protocol is the TAI/ETH SushiSwap pool.

The sender's balance can change by a different amount than the transfer amount. A mint incentive results in a balance increment on the sender, whereas a burn incentive decrements the remainder of the sender's balance after the transfer. An insufficient balance will revert the transaction. This is similar to the functionality of rebasing tokens in that it directly operates on user balances. The important usability benefit of this model is the locality of incentives. They are only applied to the users who engage in the incentivized transfer. Users can plan for non-standard behavior. The incentivized addresses and incentive contracts are publicly known. Users are free to avoid incentivized addresses and other activity is completely standard. The DAO will be able to add and revoke incentive contracts tied to incentivized addresses.

Within the protocol, there are three distinct types of TAI from an accounting perspective, with some overlap. These are all fungible and treated identically from a token perspective. The protocol calculates the supply of each to be used in calculations. The types are the following:

● TAIp : Protocol-controlled TAI, deployed in LP pools or other allocations per PCV

● TAIb: Genesis distributed TAI given to users. These will be accounted on a per Genesis Pool

● TAIu : User-controlled TAI, the totalSupply of TAI less TAIp In general, there is overlap between TAIb and TAIu . When users sell to protocol LP via an AMM, TAIu can become TAIp . Vice versa — when users buy TAI, it goes from TAIp to TAIu .

TaiChi Swap

TaichiSwap is a application providing a low slippage and transaction stablecoin swap function for TAI-USDC-USDT holders.