Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: 0t3p0t on December 23, 2020, 09:53:53 AM
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All we need is decentralization, maybe majority of us need it. Most stablecoins are pegged with centralized assets like fiat and precious metals correct me if I'm wrong. My question is, are you contented with the current stablecoins? Or do we really need a fully decentralized one?
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I don't think it's possible because this stable coin is clearly centered.
It would be very dangerous if a stable coin was created not centrally, because it certainly does not have a guarantee for price stability.
I think this is a strange idea, but in the world of cryptocurrency there must be because cryptocurrency is full of uncertainty.
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In any case, a stablecoin must be backed by some asset in order to actually have a stable rate. Today, even those cryptocurrencies that actively maintain a pool of liquidity are still subject to volatility, so there cannot be a decentralized stablecoin.
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Stablecoins and decentralization are, in principle, incompatible. The idea behind the release of a stablecoin was originally to be a connecting link between the currencies of states and a decentralized cryptocurrency. After that, states began to develop their national digitized central bank currencies in order to take advantage of blockchain technology and raise their national currencies to a new level.
I recently heard that there are also stablecoins that are backed by cryptocurrencies. I still have a poor idea of how it works in practice. I admit that in this case, the basis of such a stable coin must still have some kind of state currency and can only partially be provided by a promising cryptocurrency.
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I am currently satisfied using stable coins, because it can minimize losses when there is a dump for my assets
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All we need is decentralization, maybe majority of us need it. Most stablecoins are pegged with centralized assets like fiat and precious metals correct me if I'm wrong. My question is, are you contented with the current stablecoins? Or do we really need a fully decentralized one?
I think we need now a decentralized stable coin platfor. We all know the hype is getting boom with decentralize platform so that it could be easily successful on the crypto market.
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I don't think it's possible @0t3p0t. As we know, stablecoins were created to have a tool that would combat the volatility of cryptocurrencies, and those stable coins must be pegged to some value that is not volatile (or as less volatile as possible) for them to do their job. When a stable coin stops doing one of those two things, it will stop being stable.
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All we need is decentralization, maybe majority of us need it. Most stablecoins are pegged with centralized assets like fiat and precious metals correct me if I'm wrong. My question is, are you contented with the current stablecoins? Or do we really need a fully decentralized one?
I think There's no stable coin at decentralized platform. Because the basic factor that affect the price are demand and supply. No one cannot control it. So don't tell about stable coin at the decentralized platform. Never..
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@banser very well said. If it is not attached to some non-volatile value, it would become another currency with which to play pump and dump and its "stable" function would not work. The reason is simple, that's why I don't think we see something like this.
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It is very difficult for us to be able to create stable but not centralized coins because these price changes can turn fatal in stable coins that are decentralized.
Let us think if there are investors who have a very large value on stable but not centralized coins then everyone can own and sell them so easily in the market and no matter the price is going to go up or down.
It is absolutely impossible to create stable but not centralized coins and this in my opinion is very dangerous.
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in fact, in order to have a stable cryptocurrency, it must be backed up by something, but if it is backed up with some kind of assets, gold or dollar, for example, then this stablecoin will not gain independence in any case.
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I think It is not possible to create a decentralized Stable Coin. Because decentralization and Stablecoin's are different thing i think. Stable coin don't carry pump, dump issue but decentralization permit this Thing. So i think it is impossible create a decentralized Stable Coin
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It is very dangerous when creating stable, decentralized coins because there will definitely be no such thing as a BackUp fund and this allows investors to lose assets from stable coins.
It is also better to create this stable coin with a careful calculation because this stable coin must be equal to the original Fiat for its circulating supply.
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In any case, a stablecoin must be backed by some asset in order to actually have a stable rate. Today, even those cryptocurrencies that actively maintain a pool of liquidity are still subject to volatility, so there cannot be a decentralized stablecoin.
Right, a agree with you. the stable coin needs a fixed price when market dump all coin dump rapidly but the only stable coin is saved for investment cause investor can reserve this main capital from the bottom.
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By itself, the name "stablecoin" means a link to the relative stability of prices of national currencies, precious stones or metals .. Still, a decentralized cryptocurrency, in order to have an idea of its value, must be pegged in the price of a more stable financial asset. Linking to bitcoin, naming the value of a cryptocurrency, let's say one hundred millionth part of bitcoin, still doesn't tell us anything about the value we are used to. Or, let's say, compare it with the Tron coin and say that this coin is equal to eight Tron. All the same, in the end, we need a peg to more stable coins, which suffer only from inflation.
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Stablecoins are cryptocurrencies that claim to be backed by fiat currencies at a 1:1 ratio and aim at overcoming the price volatility by maintaining a stable value in relation to a state-issued currency. They are often used as a store of value or units of account, with payments being another popular use case.
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I think It is not possible to create a decentralized Stable Coin. Because decentralization and Stablecoin's are different thing i think.
Stablecoins are cryptocurrencies that claim to be backed by fiat currencies at a 1:1 ratio [...]
I think DAI is the most successful decentralized Stablecoin. It doesn't need to be backed by fiat currency, instead it is backed by a variable amount of Ether and some tokens like USDC, but mostly by Eth that is always worth at least 1.5 USD for each Dai that exists. This works and has survived lots of volatility in the crypto market, including Eth crashing 40 percent in one day, more than once.
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What can stabilize prices is the #DevelopmentTeam and the #DevelopmentTeam should have access to stabilize prices so that there is no such thing as an unpredictable Pump and Dump.
It is difficult to create a stable coin that is not centralized because all stable systems are usually centralized and even the Fiat money we have is owned by a centralized bank.
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I don't think it's possible @0t3p0t. As we know, stablecoins were created to have a tool that would combat the volatility of cryptocurrencies, and those stable coins must be pegged to some value that is not volatile (or as less volatile as possible) for them to do their job. When a stable coin stops doing one of those two things, it will stop being stable.
I agree with your opinion. A stable coin will only have a relatively stable price if it is pegged to such a relatively stable currency in terms of price, which are the currencies of strong states or their unions, or is pegged to other values and financial assets that also have a relatively stable price. Decentralization in cryptocurrency has high price volatility because it does not have a price regulator and is formed only on the basis of supply and demand. Therefore, there cannot be a decentralized stablecoin, this is contrary to the essence of a stablecoin.
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I don't think it's possible @0t3p0t. As we know, stablecoins were created to have a tool that would combat the volatility of cryptocurrencies, and those stable coins must be pegged to some value that is not volatile (or as less volatile as possible) for them to do their job. When a stable coin stops doing one of those two things, it will stop being stable.
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Stablecoins and decentralization are, in principle, incompatible. The idea behind the release of a stablecoin was originally to be a connecting link between the currencies of states and a decentralized cryptocurrency. After that, states began to develop their national digitized central bank currencies in order to take advantage of blockchain technology and raise their national currencies to a new level.
I recently heard that there are also stablecoins that are backed by cryptocurrencies. I still have a poor idea of how it works in practice. I admit that in this case, the basis of such a stable coin must still have some kind of state currency and can only partially be provided by a promising cryptocurrency.
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I don't think you can create a decentralized stablecoin. The stability of the price of such coins is ensured by the currencies of states or other values that have a relatively stable price. Decentralization and price stability are mutually exclusive. So far nothing has been invented to upset this balance.
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In any case, a stablecoin must be backed by some asset in order to actually have a stable rate. Today, even those cryptocurrencies that actively maintain a pool of liquidity are still subject to volatility, so there cannot be a decentralized stablecoin.
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Decentralization and price stability are incompatible things. Therefore, from my point of view, there cannot be a decentralized stablecoin. Stable coins must be backed by real values that have a relatively stable price. It can be the national currency of states, gold and other precious metals and stones, securities and shares of enterprises. Cryptocurrencies cannot have a stable price.
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I need to understand about the cryptos more after reading the convos ::)
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We already see what a decentralized stablecoin is with the example of the UST stablecoin scandal, which was backed by the Luna cryptocurrency. Such examples will cause governments to tightly regulate all stablecoins. I can’t even say if this is good or bad for the cryptocurrency market, because large-scale abuse and fraud are quite possible in this area.
A stablecoin, after all, must be backed by a stable financial asset - fiat, gold or other similar assets.
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It's not possible with real asset pegged stable coins, but people currently experimenting with algorithmic stable coin.
Well, it's true that Terra-Luna is one big example of a failed algorithmic stable coin, but who knows someone could create the working, secure version of it.
In theory, it can be done, but in reality, governments and central banks won't allow this decentralized stable coin IMO.