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Cardano Sees First-Ever Stablecoin Launched on Network

Cardano Sees First-Ever Stablecoin Launched on Network



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  1. According to the GitHub repository, there are two types of parties interacting with the protocol within the protocol: Reserve providers and AgeUSD users. The first pay ERGs, Ergo’s native currency, into the dApp’s reserves, thereby minting “Reserve Coins” that represent ERG reserves. Users of the protocol also deposit ERGs into the dApp reserves but create AgeUSD instead.

    lol, so will technically create new “token” by providing another token as reserve.

    Very clever, but it technically the same, but once again, Ergo n Cardano prefer to control everything.

    What a decentralized stablecoin!

  2. Some positive news coming out of Cardano in the past few days. First the NFT minting getting up and running, now Stablecoins. We could be at the beginning of something here, guys. Strap in.

  3. Definitely interesting news. Seems like Emurgo is trying to break away from the traditional structure where stablecoins are backed 1:1 by USD collateral. This traditional setup is vulnerable to liquidation risks that can mess with the stablecoin’s value.

    >According to the GitHub repository, there are two types of parties interacting with the protocol within the protocol: **Reserve providers and AgeUSD users**. The first pay ERGs, Ergo’s native currency, into the dApp’s **reserves**, thereby minting “**Reserve Coins**” that represent ERG reserves. Users of the protocol also deposit ERGs into the dApp reserves but create AgeUSD instead.
    >
    >This is only allowed by the protocol if there are enough reserves above the reserve ratio in the dApp. **Users can redeem AgeUSD for ERGs from the reserve** at any time. Reserve providers can only do this if “the price of ERGs increases or a significant amount of protocol fees is collected, covering the value of all existing minted AgeUSD plus an additional margin”.

    I am a bit confused though and would love to start discussion on this. My understanding is that reserve providers pay ERG’s to build reserves. These reserves act as a buffer against mass liquidation. Then users pay ERG to receive AgeUSD.

    It would seem that AgeUSD is then tied to the value of ERG, right? What pegs ERG to USD?

  4. So im still figuring out how a lot of crypto works and I’m learning a lot each day, but as a noob question would a new Stable coin boost ADA or would it be a new coin?

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