$HOPE Pricing Mechanism

The launch of $HOPE

$HOPE will be initially launched at 50% of face value ($0.50) and its market value is expected to gradually reach 100% ($1.00) as the BTC and ETH in HOPE Gömböc appreciates.

Price Determination of BTC and ETH for $HOPE

The set pegging ratio of BTC and ETH for $HOPE

$HOPE is currently backed by reserves of BTC and ETH reserves at a set pegging ratio which is found by a price discovering process:

10,000 \;$HOPE = 0.10801805\ BTC + 1.08018050\;ETH

Discovering data chart: https://hope.money/?discovering_hope=1

Discovering period : 13/3/2023 12:00 UTC - 14/4/2023 12:00 UTC

The reserve price of $HOPE:

The reserve price of $HOPE now fluctuates alongside BTC and ETH prices while maintaining the established ratio.

The reserve price of $HOPE is not affected by arbitrage activities and may be different from the market price of $HOPE in HopeSwap.

Index price page: https://hope.money/?discovering_hope=2

Methodology for each Token(BTC/ETH):

The specific amount of BTC and ETH will be held in reserve pools for each $HOPE token is determined by the price discovery mechanism, which is ongoing and can be explored on our website. Currently, the initial fixed ratio between BTC and ETH is 1:10, but it can be subject to adjustment through LightDAO governance in the future.

The initial value of $HOPE is $0.50

$HOPE = $0.50 = x* Price(BTC) + 10x* Price(ETH)

To ensure fair price discovery, we collect the OHLC data (Open, High, Low, and Close) every minute from three exchanges (Binance, OKX, and Coinbase). These values are averaged for each minute and exchange over the entire discovering period. The token price for each minute is then calculated as the average of the OHLC values for the three exchanges. The Time-Weighted Average Price (TWAP) is the average of all token prices over the entire discovering period.

For each token BTC/ETH:

$$Ex ∈{Binance,Okx,Coinbase}$$

For every time $t$, where O = Open, H = High, L = Low, C = Close, P = Price at time $t$:

$$P_t^{Ex}=(O_t+H_t+L_t+C_t)/4$$

$$P_t=(P_t^{Binance}+P_t^{Okx}+P_t^{Coinbase})/3$$

Time weighted average price (TWAP) for each token. $N$ is the number of 1-minute intervals across the entire price determination window period:

$$TWAP= ∑_{n=1}^N(P_{t,n=1}+P_{t,n=2}+⋯P_{t,N})/N$$

Peg Event Implementation

The Peg Event for $HOPE will occur gradually as the value of BTC and ETH in HOPE Gömböc increases, with Dedicated Market Makers using a self-correcting pricing mechanism to maintain the peg at $1.00 and providing liquidity of $HOPE across exchanges, with the ability to mint and burn $HOPE as needed.

Find out more in Development Phases of $HOPE.