Stable Coin

Matt Robertson

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Jun 3, 2017
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I've been a huge fun of stable coins ever since I learned about bitUSD on the bitshares network, you can see from my videos on everydaycrypto. I consider bitUSD and Maker/DAI , and Steem Dollar, the only true stable coins. Tether is just.. well bank backed.. and Nucoin was a ponzi scheme in my opinion... anyway.

From the roadmap it looks like we are looking at doing file storage and some other more advanced functionality. I really think that a stable coin project would be huge benefit to our users. We want to be an easy to use coin... something grandma can use. Well, if grandma's balance is shown in $USD and it goes up and down all the time.. that is not very user friendly.

What about doing a propsoal to vote on adding a stable coin into our roadmap?

Side note, what about rootstock? can we take their code and run it on DASH?
 

tungfa

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Apr 9, 2014
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in my opinion these "stable" coins are all nonsense as they are not backed by anything and to peck them 1-1 to US$ does not work (as seen in tether when they had their glitch)
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a currency has to run free in the market (back to australian economics ) otherwise u are no better than the US$ being "directed" by a central entity
the market / price fluctuations have their good and bad and will mellow out over time (more usuage - less speculation)

PS:
am considering moving this under Altcoins
(should i ?) :rolleyes:
 

TheSingleton

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Mar 27, 2017
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in my opinion these "stable" coins are all nonsense as they are not backed by anything and to peck them 1-1 to US$ does not work (as seen in tether when they had their glitch)
+
a currency has to run free in the market (back to australian economics ) otherwise u are no better than the US$ being "directed" by a central entity
the market / price fluctuations have their good and bad and will mellow out over time (more usuage - less speculation)
While I agree that unbacked or centralised (USDT) stable coins are problematic.
If you look at the plans of Maker or what Bitshares is already doing the stable coins are backed by an underlying currency and are free floating in their price.
But with incentives built into the system so that they will always converge to their peg.
 

Matt Robertson

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Jun 3, 2017
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Well, I don't think it's for the altcoin sub, as i'm proposing to add a stable token to the DASH protocol. Let me back up a bit and give some more context.

The reason I think this is even a subject is because I read the roadmap and storage is on it. Something similar to IPFS, SIA, or Storj. So, on the roadmap there are things pretty advanced. Because we are willing to put that on the roadmap I think it seriously should be considered to add a stable token.
v
Our Mission is to provide a peer to peer digital cash system.

Well, which one of these is more closely aligned with that goal>

1. File storage...
or
2. A way for users to take their DASH and with one click convert it to a stable store of value denominated in US Dollar, Gold, Silver, Euro, etc , and at any time they can convert it back to DASH, or they can transact directly in those units on all the DASH network?

Do you think the volatility is going to go away anytime soon? Bitcoin is 40x our market cap and can still swing 30-40% in a day. You think a merchant or grandma can handle that? Here is my stance on volatility:

https://www.everydaycrypto.com/?p=69

So, I believe that stable coins provide a HUGE benefit for users and for merchants. If we have that functionality it becomes much much easier to onboard users. How do we grow our network? We onboard as many users as possible. A stable coin would give us the same functionality offered by coinapult locks on their wallet, except ours would be trustless, backed by DASH and all onchain. https://www.coindesk.com/coinapult-launches-locks-tool-eliminate-bitcoin-price-volatility/

Okay, stable coin you say.... that's all BS and magic and federal reserve note trickery... Yes, there are several of those:

BAD:
Tether . This is just a banked back token no different than US Dollars except on a blockchain
NuBits - This is mainly like tether except decentralized, but the controls around who gets the money and what they did means money would slip out of the system through dishonest individuals until the point it would collapse. All the other methods of holding the peg were temporary based and really would make it harder to hold the peg in long term. This one was doomed to failed and I called it way before hand on my blog, I've been tracking these stable coins for years now.

Good:
bitUSD on Bitshares . https://steemit.com/bitshares/@xeroc/what-makes-the-bitusd-than-nubits
Steem dollars on Steemit . https://steemit.com/steem/@dantheman/introduction-to-steem-dollars-sbd
Maker/DAI on Ethereum . https://blog.makerdao.com/2017/06/05/introducing-sai/

These ones are good because they are trust less and backed by underlying assets. They are secure at a system level. To understand how that is possible either read about those or you can watch me try to explain on
https://www.everydaycrypto.com/?p=96 . (start at the 9 minute mark)

Maker is the newest to emerge and isn't even launched yet.

Anyway, I think if we are going to be forward looking maybe 1,2,3 years out a stable coin that sits on the DASH network, where users could flow in and out of and transaction directly with would be a bigger value to our network than building in file sharing.
 

TheSingleton

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Mar 27, 2017
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@Matt Robertson Your thinking of Dash Drive which is not a user facing feature and nothing like ipfs/sia/storj. It is only for internal use to keep track of users and other relevant data.

But I agree with the general idea that a stable coin would be useful for Dash. Though I do realise that compared to evolution this is not a priority.