# Introduction

**Chipshop Finance** (*CF*) is an experimental regional economy and one of the first algorithmic coins on the *Binance Smart Chain* (*BSC*).

Our aim is to become the longest lasting, most secure and most successful stablecoin on the *BSC*. 

The *CF* protocol is designed to expand and contract the supply of *CHIPS* coins similar to the way central banks trade fiscal debt. The mechanics behind the seigniorage shares concept were analysed and presented by [Robert Sam's work](https://blog.bitmex.com/wp-content/uploads/2018/06/A-Note-on-Cryptocurrency-Stabilisation-Seigniorage-Shares.pdf) which we used as a rule of thumb to engineer an autonomous, self-referential coin that satisfies the demands of **stability**, **elasticity** and **reflexivity**.    

Unlike most of the non-collateralised algorithmic stablecoins, which are pegged to fiat currency, i.e. $1 USD, *CHIPS* coins are pegged to *Ethereum* on Binance (*BETH*). We believe in this cryptocurrency and its immense acceptance from the community is giving to us a tracking point which has the potential to increase from a speculative and adoption point of view giving value to our *CHIPS* coins.

Inspired by previous algorithmic stablecoins on *BSC*, i.e.  *BDollar*, *Midas Dollar, Bolt Dollar* and *Wantanmee*, *CF* is a  three token protocol: 

* *CHIPS:* the algorithmic stablecoin which is pegged to *BETH*.
* *FISH* *(Share):* the share which holders can use to claim *CHIPS* when the network expands (the inflationary phase).
* *MPEAS(Bond):* the Mushy Pea bond which can be purchased when the network is in contraction and can be redeemed for *CHIPS* coins when the network comes to its deflationary phase and the *CHIPS* coin price goes below *BETH* (under-pegs).

Unlike other failed algorithmic stablecoins, we are proposing 5 methods to keep *CHIPS* above peg and provide the incentive framework for tackling extreme greed and extreme fear reactions of the token holders, during economic crisis. 

We are confident that the use of our ***ChipSwap*** mechanism will make us the first successful long term algorithmic stablecoin on the *BSC*.

To get a better understanding of where the theory and practice of this experiment stands in the stablecoin ecosystem, we encourage you to read [this great article](https://insights.deribit.com/market-research/stability-elasticity-and-reflexivity-a-deep-dive-into-algorithmic-stablecoins/).

***Note:*** Crypto assets are volatile and you should only invest money you can afford to lose.