One Cash Finance Not Stable
Notice: This page is a new case study and some aspects have not been fully researched. Some sections may be incomplete or reflect inaccuracies present in initial sources. Please check the References at the bottom for further information and perform your own additional assessment. Please feel free to contribute by adding any missing information or sources you come across. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.
One Cash was created as a decentralized fork of the basis protocol with some minor tweaks. The token appears to have gained a massive value, followed by quickly dropping to a value below $1. The experiment does not appear to have been successful. The anonymous developer deleted their Medium and Twitter accounts after the crash.
About One Cash
"Our project on the Basis protocol is about to go live, it is based on the fork of BasisCash. This project is set up for bolder experiments on the model of Basis protocol."
"Although the initial OneCash are very similar to BasisCash, with the gradual realization of improvements, OneCash will become the most daring and innovative experimental project for the Basis protocol."
"One Cash is the most daring and innovative experimental project for the Basis protocol. It is an algorithm based stablecoin protocol derived from Basis Cash."
"ONC is the stable coin. ONS is its share token. ONB is its bond token."
"Unlike Basis Cash: One Cash has no initial mining. ONC and ONS are minted directly."
"Inflation starts from the very beginning and rebases every 8 hours (maximum: 10% each time; 1.1^3 for every day)."
"BAS-DAI LP tokens will be staked in future inflation cycles with a locking time window to exit."
"One Cash (a new algorithmic stablecoin) is listed on @DeBankDeFi now! (#TVL-$5.6M so far)"
Homepage:[1]
Medium:[2]
CypherHunter:[3]
CoinGecko:[4]
Binance:[5]
The Reality
"The latest public audit reports are nowhere to be found. Team profile is anonymous."
Stablecoins depend on the market to maintain their value. They typically suffer from major issues when public confidence is lost, causing a large number of users to liquidate their tokens at whatever price they can get. If the peg is not restored, this can permanently end the stablecoin project.
What Happened
The One Cash coin was launched at a high price of $500, and crashed below $1 within 48 hours.
Add data from CoinGecko:[4] Binance:[5]
Articles from Medium:[2]
| Date | Event | Description |
|---|---|---|
| December 26th, 2020 12:47:15 AM MST | Launch Announcement | The One Cash Finance project launch is announce on Medium[6]. |
| December 29th, 2020 6:52:00 AM MST | Tweet About Launch | DeBankDefi tweets about the launch of the One Cash project[7]. "One Cash (a new algorithmic stablecoin) is listed on @DeBankDeFi now! (#TVL-$5.6M so far)" |
| December 30th, 2020 | Token Launch And Crash | The token launched with an opening price of $500, which crashes to a value well below $1 within 48 hours[4]. |
| July 13th, 2022 4:26:00 AM MDT | ABettaMeta Stablecoin Project Failure List | The stablecoin is included in the list of failed stablecoins by ABettaMeta[8]. |
Technical Details
Stablecoins depend on the market to maintain their value. They typically suffer from major issues when public confidence is lost, causing a large number of users to liquidate their tokens at whatever price they can get. If the peg is not restored, this can permanently end the stablecoin project.
Total Amount Lost
The total amount lost has been estimated at $5,600,000 USD, based on the total value locked at launch[7].
Immediate Reactions
The anonymous developer deleted their Medium and Twitter accounts after the crash.
Ultimate Outcome
The incident appears to have been included in a list produced by Twitter user ABettaMeta[8].
Total Amount Recovered
The total amount recovered is unknown.
Ongoing Developments
TBD
General Prevention Policies
Unfortunately the One Cash token appears not to be backed by any actual assets or reserve. As such, the price is only supported by the liquidity of the market for the tokens provided.
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ One Cash Interface Homepage (Nov 2, 2022)
- ↑ 2.0 2.1 Misaackman Medium Archive August 1st, 2021 3:08:21 PM MDT (Nov 2, 2022)
- ↑ One Cash - CypherHunter (Nov 2, 2022)
- ↑ 4.0 4.1 4.2 One Cash Price in USD: ONC Live Price Chart & News - CoinGecko (Nov 2, 2022)
- ↑ 5.0 5.1 One Cash Price History - Binance (Nov 2, 2022)
- ↑ Onecash Finance Launch Medium Archive December 26th, 2020 6:33:10 PM MST (Nov 2, 2022)
- ↑ 7.0 7.1 DeBankDeFi - "One Cash (a new algorithmic stablecoin) is listed on @DeBankDeFi now! (#TVL-$5.6M so far)" - Twitter (Nov 2, 2022)
- ↑ 8.0 8.1 ABettaMeta - "Yeah flexUSD, UST, DEI, TITAN, BitUSD, NuBits, Basecoin, One Cash, Dynamic Set Dollar, unified Stable Dollar, bDollar, Midas Dollar, Freeliquid, Stand Cash, BondAppetite, Empty Set Dollar, Coffin Dollar, OpenDAO, Wault Finance, BeanStalk, & DefiDollar holders are all doing great!" - Twitter (Jul 13, 2022)