Block by Block is a series where we dive into different industries and examine the entry-points for decentralization. Stablecoins are, as some would like to say, the “Holy Grail” of cryptocurrencies. They promise to offer the stability of fiat currencies while maintaining the censorship-resistant features of cryptocurrencies. With the recent string of announcements¹ from stablecoin …
Full disclosure, I am biased and the founder. NOS (http://nos.cash/) is the issuer of NOLLAR an IOU fiat stablecoin 1:1 backed by Dollar. They are based on blocklattice-technology (Nano-fork) offering instant & feeless transactions.
I feel IOU USD is the most appealing brand to capture the mass market, also I believe that any ERC20 stablecoin will only be useful to keep it at centralized exchanges and not for real world uses as for example payments in emerging markets.
Mindreactions< 2 years account age. > 100 comment karma.9 months ago
My personal opinion is that Svandis token’s price will increase in future, cause it is really innovative project with many advantages and it can really help people.
This is for borrowing Dai, meaning you get leverage on the collateral you deposit and thus more volatility. It's the opposite of the typical stablecoin usecase where you sell a volatile asset to get a stable asset.
If you want to simply buy Dai to hold it for stability, you need 1 USD of assets to buy 1 Dai.
For a crypto-backed coin, yes this is necessary. You can always get your deposit back by returning the stable coins you borrowed, however.
If you could borrow 100% of the value of your collateral, then a price drop would cause the coin to be instantly under-collateralized and likely break its price peg.
No, Staticoin is ETH backed.
The number of tokens do not change as prices change. I.e. there is no algorithm that attempts stability through supply and demand. It is classified as crypto backed, not algorithmic.
Ah yes, you are correct. I had misunderstood how Staticoin works.
It seems like it would have the same problem with under-collateralization though if ETH drops too much and the value of RiskCoins drops to zero. I can't find any sort of on-chain system that actually enforces closing a position where the collateralization of a given contract drops under 100%, so it seems like Staticoin could easily become under-collateralized.