- no overcollateralization: you send $1 worth of crypto to get $1 worth of stablecoins
- no margin calls, no liquidations, even in case of abrupt price movements
- no front-running, no miner bribing, because the dapp runs on a DAG and there are no miners and blocks
- they can optionally earn interest (stable+ coins)
One can easily create new stablecoins that target any benchmark: USD, BTC, stocks, commodities, indexes, etc, or a benchmark + interest. We use a broad definition of “stable” in “stablecoin”, meaning stable relative to a target, the target being anything that can be tracked by an oracle.
Under the hood, stablecoins are issued on a two-dimensional bonding curve. The curve issues two tokens T1 and T2 against the deposited reserve according to a formula (Bancor is the closest analogy and it works on a one-dimensional bonding curve). Having two tokens gives more flexibility and allows the price of T2 token to stay near the target while the supplies of both tokens change.
The price of T2 follows the target, it is a stable or stable+ coin (stable+ if the target includes interest). The price of T1 depends on the amount of T2 issued. It is a governance token, its holders can vote to change various parameters.
Details (with a good deal of math): https://medium.com/obyte/using-multi-dimensional-bonding-curves-to-create-stablecoins-81e857b4355c
There are no owners, no admin keys, no developer backdoors.
It’s live, try it out: https://ostable.org
I’m the founder and will be happy to answer your questions.