There is already USDI but it is not mentioned
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”One can not serve two masters”
Operating a stablecoin (especially one that would be competitive against giants like USDC) and maintaining public infrastructure are two very different tasks.
A DAI like system would have been the far better option for CKB because it’s usage level is so low, we were never going to be able to carry it alone. But I suppose that all depended on the success of RGB++, if that had gone differently then RUSD also had a chance.
You had 100 people exchange $10,000 USD worth of CKB when the price was at 4 cents a couple of years ago. This means the LP contained $2 million dollars worth of CKB and there was $1 million dollars of circulating utxoUSD able to be redeemed.
The price is now $0.0015, so we now have 1 million utxoUSD worth about $70k, so about 7 cents in the dollar for the holders of utxoUSD.
But it’s worse than that because your guaranteeing the exchange rate of $1, so the first 7 holders exchange their utxoUSD for the $70k worth of CKB left in the pool and the other 93 holders don’t get a cent.
And the original CKB deposited in the pool is gone, so a price correction wont fix the issue.
Obviously it wouldn’t play out like that, it would collapse like a house of cards well before that point, but that is the situation in a nutshell, everything works until doesn’t and in crypto, no amount of over collateralization is enough.
I might be wrong, but I’m reading it as his system guarantees the exchange rate, so 1 utxoUSD can always be exchanged for $1 of CKB.
If this is the case, the more people that take part the more dangerous the system gets.
If you are the only person to use the pool, then you will almost always be able to get your money back no matter how much the price of CKB drops.
But I think the problem is that the collateralization doesn’t scale with the amount of utxoUSD minted.
If one person mints 10k utxoUSD, then their 10k USD is only 1% of the pool, so the price of CKB can drop by 99% and they can get their money back.
If 100 people mint 10k utxoUSD then price of CKB can only drop by 50% before the pool can’t meet it’s obligations.
@yifenzi I don’t know man, this just doesn’t seem to add up. If the price of CKB keeps going up, then it probably works, but I don’t think Stablecoins are that easy.
No, definitely not, this is the whole issue mate, you can’t have a stablecoin that is reliant on the success of another token or project, it defeats the whole purpose and shouldn’t be called a stablecoin or have any references to USD or any other currency.
Users of CKB deserve to know their ‘stablecoin’ is going to be worth the same amount in the morning, it should be the safehaven token, no matter what happens to CKB.