4 ms·
I think you've hit the nail on the head. Stablecoins exist in the non-crypto world [1] and they all are slaves to the Trilemma - there are trillions at stake if
by boc 4y ago
I think you've hit the nail on the head. Stablecoins exist in the non-crypto world [1] and they all are slaves to the Trilemma - there are trillions at stake if someone could figure out a way around this, but, much like the 2nd law of thermodynamics, you can't make the math work. Crypto doesn't offer a technology solution to this issue since it's not a matter of tech, but rather financial math.
If you're a fan of crypto and still reading, here's a hint at the next financial innovation after pegged currencies that you can try to replicate in the cryptoverse: XDR [2]
[1] https://en.wikipedia.org/wiki/List_of_circulating_fixed_exchange_rate_currencies https://en.wikipedia.org/wiki/List_of_circulating_fixed_exch...
[2] https://en.wikipedia.org/wiki/Special_drawing_rights https://en.wikipedia.org/wiki/Special_drawing_rights
- deleted 4y ago[deleted]
- SilasX 4y agoSpecial Drawing Rights was one of the stablecoins on the (recently defunct) Terra platform. You present yourself as deeply knowledgeable about these topics, I’m surprised you missed it: https://www.investopedia.com/terra-5209502 https://www.investopedia.com/terra-5209502
- pmyteh 4y agoI don't read parent's comment as advocating the creation of a stablecoin pegged to XDR, but rather repurposing the principle of targeting (flexibly) a basket of underlying reserve assets as a unit of account in cryptoland.
- SilasX 4y agoBut choosing the same basket as XDR would still satisfy that goal, and picking different currencies would be a trivial difference. And if that's the extent of the idea, the parent could have just said so, rather than taking on this coy mystique of "oh, I'd reveal my deep insight, but, novices like you have to do the research and figure it out yourself, else you won't be ready for it".
- deleted 4y ago[deleted]