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Somebody has to guarantee that the the USD are actually there to perform a trade. There's no other way to guarantee that that doesn't imply going off-chain.
by Daishiman 9y ago
Somebody has to guarantee that the the USD are actually there to perform a trade. There's no other way to guarantee that that doesn't imply going off-chain.
- AlexSolution 9y agoMakerDAO uses collateralized smart contracts to provide stability to their Dai token. Right now, only ETH can be used as collateral, but in Q2 they are starting multi-collateral support. https://makerdao.com/ https://makerdao.com/ https://coinmarketcap.com/currencies/dai/ https://coinmarketcap.com/currencies/dai/
- Daishiman 9y agoTheir whitepaper's explanation of how this works is horrendously complicated. There's no way you can encode that sort of logic into a cryptocoin in a bug-free manner. Steer clear of this.
- AlexSolution 9y agoTheir contracts are up. If you can find a way to exploit one of the bugs, you can profit massively.
- dingo_bat 9y agoIf your profit is massive enough they may even roll back the chain and do a hard fork!
- sleepychu 9y agoAnd who will abitrate the collateral? While it's smart wallets and crypto currency it can be enforced by cryptographic proof but when the collateral is USD then it's going to have to exist somewhere.
- Daishiman 9y agoAnd you're likely to sue the shit out of someone if there's a bug in the encoded contract or it turns out there's no collateral because blockchain.
- acct1771 9y ago> Somebody has to guarantee that the the USD are actually there to perform a trade. That's what kids in my day called "a risky click".