# 6.1 Algortimic Stable coins: The CDP
Commercio.network mission is to bring the Blockchain technology to give companies the freedom to sign and exchange any document. To be able do that. in a secure way, we need to have a cryptocurrency that incentivizes all the network participants. A venetian proverbs states that not even the dog wags his tail for free. We need a token on a Blockchain, or we just have a slightly more complex database (DLT).
Commercio.network is an enterprise network and therefore must solve on the critical problems associated with Tokens and Companies to succeed.
We have two adoption problems to solve:
Most companies will not want to hold cryptocurrencies for security, regulatory, fiscal or internal policy reasons.
Cryptocurrencies are highly volatile by nature and companies want to be able to budget expenses to use a platform like the commercio.network. We find difficult to tell a company that the token price you need to buy to use our service s one day is €1 after a week €50 after a month €25...
The solution is to create a second Token
# Commercio Cash Credits (CCC) our Stable Coin
We have created a mechanism to algorithmically generate a second native cryptocurrency called Commercio Cash Credit (CCC) which will be used to make Euro transactions on the Blockchain. This is game changer since on Commercio.network any transaction costs always €0.01
This mechanism solves the two problems:
Companies don’t have to hold cryptocurrency if they don’t want to or can’t.
Companies can effectively budget for the cost of using the protocol because the cost for CCC will effectively always be €1 each and the cost of any transaction will always be €0.01
# The CDP mechanism
How do we achieve price stability on commercio.network?
We use a Financial formula: an Algorithm called CDP.
A Collateralized-Debt-Position (CDP) is a monetary system where users deposit collateral into a smart contract and then receive a certain number of stablecoins equal to the value of the collateral deposited. Commercio.network stablecoin producers LOAN their CCC into existence by putting their Commercio Token as collateral. This is Uncanningly similar to how commercial banks loan national fiat money into existence through fractional reserve banking.
But unlike traditional bank loans, the majority of CDP loans are backed by full-reserve or overcollateralized reserves of volatile crypto-assets, because speculative cryptocurrencies such as Ether, Bitcoin or Commercio Token can rapidly appreciate or depreciate in value at any point in time.
# The future of CCC
In the Future Commercio Cash Credits will be used to generate any kind of supply finance asset:
- Credit letters
- Credit insurance
- Warranties
- Escrow
- Micro instant credit
- Loans against invoices
- Leasing
- Factoring
- Risk
- Payments
- Credit rating
- Long term data archival
- Digital instant alternative dispute resolution
- And many more.