Stablecoin

  1. Should we build a stablecoin?
  • Yes
  • No
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0 voters

  1. If so, what network should we build it on?
  • Ethereum
  • Tezos
  • Other (comment below)
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0 voters

  1. Should we build a decentralized MakerDAO/Celo type of solution or centralized USDC/Tether solution?
  • Decentralized
  • Centralized
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0 voters

  1. What would you use it for?
  • Leverage
  • Lending/Savings
  • Remittance
  • Other (comment below)
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0 voters

  1. What will we peg it to?
  • USD
  • EUR
  • Other FX
  • Commodity (comment below)
  • Crypto (comment below)
  • Other
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0 voters

  1. What do you think about the newly launched USDtz offering?
  • Positive
  • Neutral
  • Negative
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0 voters

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I am a real fan of stable coins, especially because the trust in tether is decreasing more and more, I also see the importance of DAI more and more.

Although in my view we can focus better on liquidity, I would choose to integrate a stablecoin like DAI with possibly a bridge option to Tezos. (As xDAI is currently doing www.xdaichain.com)

But besides Celo, USDC, DAI and a number of others, the importance of stable coins is growing!
And of course it must be linked to the currency that is broadly understood. (USD)

I voted for ‘No’ when it comes to building a new stable coin BUT, I would support it of course. My answer was only based on the liquidity problem we know from the less discussed stabe coins.

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Thank you for the input Robert!

What do you think about the recent additions to the Maker system with USDT and wBTC? Do you think it decreases the trust you have in the system with the additional centralized entities?

I think the crypto industry needs a EUR stablecoin. There are numerous USD and BTC coins already (although I don’t see BTC as a stablecoin). I don’t like to be overleveraged to USD but there is no alternative. I would choose for the Tezos blockchain because I am the most confident about deploying safe smart contracts on Tezos. Finally, I would like to see an easy minting/redemption process of the tokens and I think a somewhat centralized organization is the best option for a quick access from real EUR to digital EUR (and vice versa).

Edit: I wouldn’t even mind a small fee to redeem my stablecoins (if quick and easy) for real EUR or USD.

Quick thoughts on pros and cons

Should we build a stablecoin?
Pros: Designed via community input and shipped through a strong team
Cons: Various existing implementations

If so, what network should we build it on?
Tezos: Potentially pent up demand, but no DeFi ecosystem today
Ethereum: Various existing implementations, but strong DeFi ecosystem

Should we build a decentralized MakerDAO/Celo type of solution or centralized USDC/Tether solution?
Decentralized: The ‘holy grail’, but technically complex. MakerDAO has lost investors almost half its value over the last twelve months.
Centralized: Reliant on an entity, but more technically feasible

Both implementations require high legal costs.

What will we peg it to?
USD: Everyone is familiar and comfortable with USD, but it’s why we have so many USD stablecoins
EUR and other FX: New markets to serve, but implementations so far have a lot less traction

I like the idea of a stablecoin. I am just vary of how many resources that might consume for StakerDao, especially with a decentralized option. (see the flak Kevin got for it being “centralized”). Do you have any idea? If the decision to launch a stablecoin is made, I think the right choice is Tezos. Yes, the DeFi system on it is in its infancy but as the saying goes - “if you build it, they will come”. I certainly believe so. How else would you pay tokenised rent to real estate on blockcain? If STOs on Tezos are big - so will the need for a reliable way to remunerate Tezos token holders. Whether that is in USD or EUR is of less interest, although I think USD is the more logical choice due to the USD (still) being the world’s reserve currency. EUR would of course be nice and arguably an opportunity given the thriving European blockchain ecosystem but worst case, someone needs to build a defi solution to convert USD stablecoin to EUR stablecoin (and take a small cut - hint hint). In the end, however, it should be a decision that makes a profit for StakerDao.

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Building a new stable coin (especially a decentralized stable coin) from the scratch sounds like a complex task to me that would probably require a lot of resources. I understand that it would be useful to have one, but how urgent is the need, how would this work need to be prioritized? Is the complexity of the work to build one from the scratch understood well?

Tezos could be a good choice to build a new decentralized stable coin on if the Foundation provides funding for the project. In any case (funding would be provided or not), I would really carefully consider all other options also. Also, what is the current status of Checker? Is that implementation progressing at all at the moment, or is it just an idea that may or may not be implemented in the future? If Checker gets implemented on Tezos, would there still be any added value for StakerDAO to build it’s own stable coin on Tezos?

What comes to USD/EUR, I would choose USD, especially now. Euro might not survive this crisis, we might not have EUR soon. https://twitter.com/mtmalinen/status/1260135430273396736

EDIT: Ethereum obviously has the most mature DeFi ecosystem at the moment, but it would be interesting to compare Ava against Tezos. Ava seems to have a strong support also and is launching very, very soon to my understanding. Which one would likely bring most added value?

Interesting idea! A few thoughts:

  • Should we build a stablecoin?

I would reframe this and instead ask “what gap in the market would a new stablecoin address?” The liquidity moat for USDT will make it tough to compete as an exchange trading pair, the Ethereum ecosystem support for DAI will make it tough to compete as a primary choice for DeFi DApps, and the institutional support for USDC will make it tough to compete as a regulated stablecoin. If you think there is another use-case that is underserved, this could be a good idea. If not, I think the stablecoins in the market today (or in the next 12 months) are good enough.

That said, what we DON’T have yet are baskets of stablecoins! There have been a few attempts in the last few years and a few projects currently working on this, but nobody has nailed it in neither design nor liquidity. I could imagine a synthetic cross-chain stablecoin managed by StakerDAO as a pretty unique value prop. For example, a basket of composed of Dai, Acala, and USDtz.

Ultimately, you’ll need to talk with your target users.

  • If so, what network should we build it on?

If you decide to do this, For the reasons mentioned above, I think the market is too crowded on Ethereum. It’s easier to compete as a big fish in a small pond so Tezos seems like a reasonable choice here.

  • Should we build a decentralized MakerDAO/Celo type of solution or centralized USDC/Tether solution?

I would reframe this and instead ask how many resources or capital do you have to commit to this? Decentralized governance, as you know, takes a ton of work, and centralized stablecoins take a ton of capital.

  • What will we peg it to?

I think anything besides USD backed/pegged is a dead-end in my view as the global economy is inching toward dollarization. I’m not your target user here though so I could be wrong.

Thanks Dmitriy!

On should we build a stablecoin: I would push back on not competing against DAI because I don’t think they’ve definitely captured the market. I think there’s room for competition and I personally feel like people are looking for alternatives, but who knows! Perhaps, with what we allude to with BLND on Tezos as well as your point on a basket of stablecoins, maybe the use case should be the swap mechanism of moving a stablecoin between networks. If that should be USDT, DAI, USDC or a basket is unclear and maybe relevant to whether we should initiate our own project. I think the largest concern with a basket is of course the additional risk of the various underlying projects.

Agree on your second point!

On should we build this, yes, I think this is the correct way to frame, but I think one important point to address (relevant for @JacobPPhillips with Blend on Tezos) is that any project we undertake next will require resources and capital and I am skeptical that will have 100% confidence in the success of our next project, so in any scenario I think we will have to collectively make our best educated bet.

And lastly, no strong feelings on my side for USD vs other FX!