The biggest challenge for pegged coins (a coin on aeternity that is pegged by Euro or CHF) is regulatory. Someone has to run a business that does the exchange in both directions.
Stable coins, like DAI, are very interesting though. I also like them a lot and I think it is worth a try and the Foundation is open to receive applications regarding this topic (it should be more than just an idea stage with some code and “skin in the game” already, the idea itself is straight forward).
This can be done totally decentralized as a smart contract, I’m pretty sure too that this can be solved.
We’ve been creating a proposal together with @lukaskywalker.chain to do a DAI -> Aeternity bridge to cover the period before a native stablecoin is created on Aeternity.
Also I was speaking with people from Maker and they are all saying that they want to make MakerDAO a multi-chain thing. They were even willing to put some cash for this.
My proposal - let’s talk with Maker so that they can put a part of cash, and then the Foundation gives the rest and we build the bridge. It would be easiest that way.
A lot of projects on Aeternity are in desperate need for a stablecoin (for one we at AMPnet are hacking it with a “closed” centralised coin but we don’t like it a bit). Dai is a great project, the bridge is not too difficult to build.
The bridge would in itself be a DAO with a governance system guided by Aeternity, Maker and a consortium of other companies willing to verify “bridging” transactions from Ethereum to Aeternity.
If the foundation is willing to give this a go - so are we!
This is not only a good idea. It is a great idea. I’ll go further and say that it is required for the present. If anyone opposes a stable coin as necessary, then - with all due respect - they are not paying attention to the crypto sphere. AE should have it’s own native stable coin. There does not even need to be one business using AE as a blockchain solution for this to be true. Exchanges would implement an AE stablecoin.
There are at least two businesses in this thread that have said they need it for their business model which uses AE. This is just the tip of the iceberg, and this one point argues for a stable-coin NEED!
Ethereum transaction have been surpassed by it’s own token & stable coin proxy DAI. So, it’s a very major use case. See Vlad’s linked article above.
In trading today, Tether surpassed bitcoin in daily transaction value by nearly 50%. Why? And if I remember correctly, about 4 or 5 stable coins rank in the top 20 of all daily transaction value in the crypto space. If you want AE blockchain to be USED, not just potentially useful, then create what is being used.
STO’s - what are they but stable tokens, just ones tracking the value of real world assets other than fiat currency. So, if you are excited about STO’s then get onboard with stablecoins. And this should be as soon as possible, because that is what the businesses want or rather what they need now.
There has been much criticism about AE not marketing the block-chain. If the foundation could only do one thing to fix that, they perhaps should sponsor the development of a stable coin. The marketing will then take care of itself. And businesses requiring something stable would come. Developers would come. Having just the best smart contract programming language isn’t enough to get that traction, imo. If that were true, then everything would be written in Python joking…but isn’t there much truth in the main point?
I appreciate those that are excited about block chain and what it can do for people. I have been tracking this for nearly ten years myself. But the most efficient path forward might require adapting with the current (fiat) system as the crypto-sphere develops. That means accommodating needs for fiat, until some future time that people can be weened off of fiat. To be too rigid and disregard fiat stable tokens is like expecting to raise kittens with steak when what they need now is milk. Ok, that is an odd analogy, but hopefully it makes some sense.
sounds quite inefficient to me. backing something stable with something very unstable is not really a good idea IMO. it will require a huge amount of collateral and might run still into margin calls. maybe I am wrong.
We can back AE stable coin with DAI in completely transparent way.
We will use the advantages of DAI (stable price and liquidity) and the transparency of blockchain + the cross-chain interoperability possible via JellySwap Protocol.
If you are interested I can send more details in this thread
it doesn’t have to be all stablecoin. I think we can collateral some of them with an æ coin. I think it would be best to divide the risk 3. tether, dai, æ coin.thus, risk of a 1 coin being 0.99 for 1 dollar or 1 euro collateral can be distributed.