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I've long felt that a price-stable cryptocurrency is vital to increased acceptance of cryptocurrency by businesses and the public at large. There are a few solu

I've long felt that a price-stable cryptocurrency is vital to increased acceptance of cryptocurrency by businesses and the public at large. There are a few solutions to this problem out there, but, in my opinion, they are either too centralized (and require too much trust) or they're too complicated. I wanted something simple, distributed, and trustless, so I made Unum. https://unum.one https://unum.one Unum is implemented as an ERC20 token smart contract on the Ethereum Blockchain. If you send in $20 worth of Ether, you get 20 Unum. If you send in $100 worth of OMG, you get 100 Unum. Whatever you send in is held in reserve by the smart contract. I can't touch it, and you can exchange your Unum into any currency held in the reserve whenever you'd like. Both buying and selling Unum incurs a 0.05% fee, which I plan to use to pay for the Ether needed to maintain the USD price oracle contract that's used to maintain the dollar peg. For every $100 you send, $0.05 is held as a fee. Right now Unum is deployed on the Ethereum Ropsten testnet. I'd love feedback on the contract itself, which is on Github, and on the website. You can buy and sell Unum on the Ropsten network today if you have MetaMask through the Unum website. Buying and selling is done directly on the blockchain, there is no backend to the unum website itself. If you'd prefer, you can also use Mist to interact with the Contract directly. I plan to move to the main Ethereum network soon, baring any major bugs being found. If you're interested more in my thinking behind Unum, you can read the blog post, below, or just ask any questions here. https://github.com/UnumOne/unum https://github.com/UnumOne/unum https://medium.com/unum/from-many-unum-8c8493a8db9d https://medium.com/unum/from-many-unum-8c8493a8db9d

Finnucane 9y ago
Price stability is a requisite for a currency that you intend to actually use as money, but in this case it seems you have to buy some other crypto token first in order to buy yours. That just adds to the transaction cost.
- impostervt 9y ago
  It maintains it's price stability by using other cryptocurrencies as a surrogate to the USD.
  - Finnucane 9y ago
    But you still have no way to buy unum directly with dollars, is that right? It’s not useful unless you already have some other crypto coin.
Aqueous 9y ago
Do you have to trust that the exchanges are telling your price oracle correct averages? Is this a source of trust leakage?
- impostervt 9y ago
  In a sense, yes - if all the exchanges are manipulated, Unum is screwed. The price being sent to the oracle is an average, so manipulating just one wouldn't have that much of an effect.
gus_massa 9y ago
How can you ensure a $1 price if the price of Ethereum goes down and the reserve is less than the amount of Unum?
- impostervt 9y ago
  first, it’s backed by a number of other cryptocurrencies, so that mitigates the risk of any one reserve currency tanking somewhat. Second, in the event that the reserve is worth less than the number of Unum issued, a reserve deficit sell penalty is applied to any sales. The penalty is 1/10th of the deficit percent. So if the reserve was worth $900k, but 1mil Unum we’re in circulation, there would be a deficit of 10%, and any sales would incur a 1% sale penalty. This is meant to encourage would-be sellers to either wait, or sell elsewhere.
  - Finnucane 9y ago
    If you want to maintain dollar parity, wouldn’t it be easier to use Treasury bonds? Dollar parity would be garaunteed by definition.
  - gus_massa 9y ago
    Cryptocoins are strongly correlated, if one of the big ones goes down there is a high chance that most of them are going down. The penalty will not protect the coin from a "bank run". The user must choose between getting the money now with a 1% cut, or waiting and extracting the money with a 2% cut, ..., or waiting until there is no money left.

Finnucane 9y ago

Price stability is a requisite for a currency that you intend to actually use as money, but in this case it seems you have to buy some other crypto token first in order to buy yours. That just adds to the transaction cost.

impostervt 9y ago
It maintains it's price stability by using other cryptocurrencies as a surrogate to the USD.
- Finnucane 9y ago
  But you still have no way to buy unum directly with dollars, is that right? It’s not useful unless you already have some other crypto coin.

Aqueous 9y ago

Do you have to trust that the exchanges are telling your price oracle correct averages? Is this a source of trust leakage?

impostervt 9y ago
In a sense, yes - if all the exchanges are manipulated, Unum is screwed. The price being sent to the oracle is an average, so manipulating just one wouldn't have that much of an effect.

gus_massa 9y ago

How can you ensure a $1 price if the price of Ethereum goes down and the reserve is less than the amount of Unum?

impostervt 9y ago
first, it’s backed by a number of other cryptocurrencies, so that mitigates the risk of any one reserve currency tanking somewhat. Second, in the event that the reserve is worth less than the number of Unum issued, a reserve deficit sell penalty is applied to any sales. The penalty is 1/10th of the deficit percent. So if the reserve was worth $900k, but 1mil Unum we’re in circulation, there would be a deficit of 10%, and any sales would incur a 1% sale penalty. This is meant to encourage would-be sellers to either wait, or sell elsewhere.
- Finnucane 9y ago
  If you want to maintain dollar parity, wouldn’t it be easier to use Treasury bonds? Dollar parity would be garaunteed by definition.
- gus_massa 9y ago
  Cryptocoins are strongly correlated, if one of the big ones goes down there is a high chance that most of them are going down. The penalty will not protect the coin from a "bank run". The user must choose between getting the money now with a 1% cut, or waiting and extracting the money with a 2% cut, ..., or waiting until there is no money left.