In order to better meet users' demand for stablecoins, Huobi Global will upgrade the existing HUSD Solution and operate HUSD Solution V2.0 (hereafter referred to as HUSD V2.0) on a trial basis since January 24 (GMT+8).
HUSD V2.0 updates:
1. Cancel the fixed exchange rate (1:1) between all stablecoins and HUSD, and the exchange rate will be adjusted dynamically based on the price of stablecoins.
2. HUSD price is bound to the USD price in the fiat-crypto markets of mainstream exchanges.
3. The price of stablecoins shall be determined by the price of all stablecoins in the mainstream exchanges.
4. The exchange between each stablecoins and HUSD shall be adjusted from automatic exchange to manual exchange, and users may choose the exchange time and amount independently.
* This upgrade will not affect HUSD transactions and the holding amount of users.
Examples of Exchange from and to HUSD:
HUSD can exchange with stablecoins based on the above exchange rates, and currently only PAX, TUSD, USDC and GUSD are supported. There is no charge for the exchange.
Exchange to HUSD: A user wants to exchange 1,000 PAX to HUSD, assuming the current rate of PAX/HUSD is 0.9998, 1,000 PAX will be exchanged to 999.8 HUSD.
Exchange from HUSD: A user wants to exchange 1,000 HUSD to TUSD, assuming the current rate is HUSD/TUSD 0.9999, 1,000 HUSD will be exchanged to 999.9 TUSD.
Schedule for launch:
Huobi Global will upgrade HUSD Solution V2.0 on January 24 (GMT+8), 2019, during which, we will suspend the deposit and withdrawal of stablecoins and resume them as soon as the upgrade is completed. Please forgive us for the inconvenience caused.
This trial operation is from 00:00:00 January 25 (GMT+8) to 23:59:59 February 25(GMT+8), during which, we will ask for suggestions for the HUSD Solution V2.0. Welcome to provide any suggestions. Once your suggestions are adopted, you will receive our HT reward.
Suggested collection: https://jinshuju.net/f/U51Edv.
Huobi has always been adhering to the concept of "Users first" and promoting the development of blockchain industry. Thank you for your support!
Appendix—How HUSD prices are calculated:
The price of stablecoins to BTC is calculated on the basis of stablecoins/BTC, and the price of stablecoins to HUSD is calculated on the basis of BTC to USD price.
P1 represents the price of Exchange A, and V1 represents the weight of Exchange A.
The Benchmark is renewed every 10s, and the market price of the corresponding exchange is taken as the market price, and the Tradeblock price is taken as the BTC/USD price.
How stablecoins prices are calculated:
1. The fair price of stablecoins is calculated by weighting the price of stablecoins in the major exchanges, and the fair price is marked as the Benchmark. The system acquires the Benchmark every 10 seconds. Different stablecoins have different prices.
2. Extra offset is calculated based on stablecoin positions and is marked as Premium. Different stablecoins have different offsets.
Calculate the proportion of position deviation. The current position data is the available withdraw amount. Available withdraw amount = hot wallet balance – amount in the withdrawal process.
Calculate the level of deviation. “Step” is the deviation proportion for each level:
Calculate the Premium according to the following formula. Pstep is the increased Premium proportion for each level’s deviation:
3. The price of stablecoins being exchanged to and from is determined by Benchmark and Premium.
1) Price of being exchanged to:
2) Price of being exchanged from:
3) 5 decimal places are preserved in the exchange rate at first, and the 5th place is rounded to 4th place. Finally, the exchange rate has 4 decimal places.
January 24, 2019