Stable coins on AE?

Good or bad idea? How feasible is this at the moment?
Economics, team, other requirements?

If it’s a good idea and is doable, who wants in on this?

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I think it’s a good idea
It may be the first step to start DeFi (decentralized finance) projects
What do you think?

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How about a stablecoin euro using the aeternity blockchain whose collateral is Bitcoin?

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It doesn’t even have to be made by “AE people.” In fact, this would have to be done by people outside the existing developer community since they are all pretty much occupied. Anyone from anywhere around the world who is interested and capable can pick up this task.
Also, I never killed anyone, and have no plans of killing anyone (as of yet) :wink:

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I’m not qualified to make an assessment on this, probably better for the devs to weigh in.
@nikita-fuchs @philipp.chain @dincho @KrumTheFearsome.chain

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I also think a stablecoin on aeternity is a project worth pursuing. It will open the doors to a number of other useful applications of cryptocurrency and blockchain tech, namely:

  • Payments - volatile cryptos are not well suited for that
  • More stable collateral
  • Other synthetic assets - crypto-based CFDs available globally
  • Insurance
  • Margin trading
  • Lending/borrowing

Generally, introducing a stablecoin reduces the inherent risks of volatile crypto, and lays a foundation for better commercial applications.

Building trust in a programmatic stablecoin takes time though. It must prove its reliability in the wild. It also introduces systemic risk.

Despite that, I am convinced that it is absolutely essential for any public blockchain infrastructure project to feature a stablecoin.

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there are definitely regulatory requirements that must be fulfilled.

would be cool to see a bank tackling this together with aeternity or some 3rd party project on the aeternity blockchain.

edit: I think it needs to be discussed whether the stablecoin should be managed programmatically like MakerDAOs DAI/SAI or whether it’s (for the moment) better to stick with banks that issue euros/dollars/… as trusted party

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I was just about to say that too!

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I believe Liechtenstein is well-suited for that. However, if we look at DAI - no regulation at this point. They will come on the radar of regulators at some point though - 100%.

I think one of the biggest innovations of #DeFi is the idea of “non-custody”. I think that’s brilliant. It is very related to regulation.

Edit: The sooner a DAI-like project is launched, the better - takes a long time to build trust / test. Harder but much more meaningful than fiat-pegged ones. The focus must be on the tech, not regulations. There is no tech or decentralization in fiat-pegs.

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Hi all,

My two cents on this.
We at AMPnet have built a stablecoin system for our platform. I think, from our experience interacting with non-crypto customers, that having a stablecoin on a platform is a must. Token economics, for the most part, doesn’t work in projects which only leverage blockchain for parts of its implementation (which is most projects at this point).

The perfect way to go would be to make a DAO Bridge with an existing stablecoin provider - for example Dai (imo it should definitely be Dai). I have already spoken with MakerDAO about porting Dai to Aeternity and they were even willing to fork out some cash to implement this.

Aeternity most definitely needs a stablecoin, myself and the team from AMPnet have been researching this very heavily in the past - feel free to ask any questions.

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I am 100% sure that we do need stable coin, if we want to have some kind of DeFi(Decentralized Finance) on Aeternity.

I have spoke with AE foundation a few times about this and we had applied for a grant to build stable coin, but we do not have progress so far…

It is not an easy task, but it is a must.

It is important for traders:

  • they can open short and long positions
  • margin trading -> borrowing/lending

For payments:

  • payments in shops
  • salaries ( employees do want stable salary)
  • miners want to move their AE to stable tokens

I do believe that DAI like stable coin is a community project. We should organise a DAO and at least 4-5 aeternity teams + ae foundation should back this.
We should solve the legal + governance issues, but everything is doable!

WeiDex will definitely support such kind of project and we would like to be part of the DAO.

It is a risky experiment, but we must try!!

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We definitely need stable token for implementing escrow on CryptoTask (for freelance jobs). Mislav, what is the current status of your stable token solution? Is it still in research or production ready? Is it something that other teams / AE ecosystem can use?

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Definitely important. The question is how to peg it. So far it seems SAI is stable.

I think is a very important goal to have a stable coin, but is not a easy task.
I think that the way DAI gets stable is the most fair one. Because the participants gets incentives to collaborate.

I wrote an article about how dai works and how is the process to get peg to usd

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I also followed MakerDAO and attended their governance calls during their early days. Creating stable coins is a lot of work, and needs full attention from a dedicated group.

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I’ll try to ask around as well and see if there are any updates on your proposal. Good on you for taking that step/initiative!

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If they are willing to support this, I would say it is definitely worth the try. Any kind of cooperation with Maker will be perceived well in the community.

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DAI is a better option. SAI is obsolete…

Followed up with Rune.

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