Stablecoins – Discussion

Hi all,

We all have heard about stablecoins and different types of them, some of them are backed by fiat or other cryptos, some of them are backed by real estates, and others are not backed by anything. Unfortunately, the last ones – the algorithmic stablecoins are not perfect, well in a really bad situation I guess non of them would be perfect, but we can leave extreme situations for next post. Luna and UST showed us what and where algorithmic stablecoins are lacking, did we learn a lesson? I did, and I hope everyone in crypto space did.

The main purpose of this post is to find solution for stablecoins, what ideas would you implement into a stablecoin to make it ”more stable”? How would you secure a stablecoin from being depegged?

My own thoughts below:

First of all, why a stablecoin is being backed only by one cryptocurrency (the main projects coin/token)? Would it change anything if a stablecoin would be backed by 3 or more cryptos which would be connected and witter into a smart contract (here a stablecoin is being backed by 5 other cryptos which circulating supply is being burned by 20% each of amount of the stablecoins being minted)? I believe there is a healthy solution for that, but I am not smart enough to find it alone.

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Thanks for any comments.

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8 thoughts on “Stablecoins – Discussion”

  1. I think The Man will probably force this issue with stablecoin regulation at some point, especially with Central Bank Digital Currencies coming on board, admittedly at old-school government finance pace, which is glacial. I wouldn’t put it past them though to act relatively swiftly to crack down on stablecoins and be very much Windows Explorer “Here’s a CyberBuck!” in 3 years time

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  2. Stablecoins backed by anything else than fiat is just a scam because the stable in stablecoins refers ro the fact that it can always be exchanged to a certain amount of … fiat.
    So if you have it backed with something that is worth a variable amount of fiat, then that stable part isn’t true anymore.
    It’s that simple

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  3. There is stablecoins before and after of what happened.

    People lost confidence in stablecoins. Is not easy to recover that.

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  4. Great idea. Let’s make a crypto equivalent or a mortgage backed security. Zombie Satoshi may just raise from the dead to hunt you down for this post.

    Reply

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