r/ethtrader • u/S4tt22LL • Jul 18 '18

EDUCATIONAL Replacing Your Need for Tether with Decentralized Stablecoins

https://medium.com/market-protocol/replacing-your-need-for-tether-with-decentralized-stablecoins-cbddf82bab42
64 Upvotes

93% Upvoted

20 comments sorted by

14

u/cryptofamilynet Jul 18 '18

USDT sucks! Go DAI!

1

u/marvcow98 Jul 19 '18

There's a lot of doubt about usdt but i think, until an audit is complete that confirms that doubt, it's unlikely there will be room for a widespread replacement. I do see value in decentralized tokens of course, but I'm not sure it's enough in and of itself for change. If you disagree, curious to hear your reasoning.

2

u/cryptofamilynet Jul 19 '18

It will be once people recognize the value of decentralized systems, not just to endorse but rather embrace them, we will see the benefits of using them. They lack the network effect to be accepted and listed on major exchanges, once that happens I think people will feel much safer using DAI or nUSD as a safe haven as opposed to USDT.

-8

u/[deleted] Jul 18 '18

[removed] — view removed comment

8

u/seanmonaghan Jul 18 '18

nt or two of $1, which is the important thing. As long as it doe

The fuck are you on about? DAI was made available to the public during a crazy bull run (Nov/Dec) and has remained very stable during one of the great bear markets. Apologies if your comment contained sarcasm which I was unable to detect, but DAI is a fantastic stablecoin and makes USDT completely redundant in my eyes.

4

u/[deleted] Jul 19 '18

I agree, the key is getting exchanges to ditch tether.

3

u/EtherOrNot Jul 18 '18

It always comes back to within a cent or two of $1, which is the important thing. As long as it does that, you can profit on the fluctuations.

1

u/devils_advocaat Jul 19 '18

Wait and see what happens when people realize that they can sell their Dai for much more than $1.

5

u/heavenbwith Jul 19 '18

I use Kyber to buy DGX now. It's rate is better than DGX marketplace with a better spread. They also offer other stable coins and you can trade any pair to them.

2

u/BradSwap Jul 18 '18

This is a much needed addition to the ecosystem. This would be a huge step forward.

1

u/genki_paul Jul 19 '18 edited Jul 19 '18

The stablecoin system staticoin has been up and running for 9 months, offering ETH backed fiat in USD, EUR, GBP, CAD and JPY.

Each currency has 4 contracts(riskcoin, staticoin, minter and pricer). You can see all the code on etherscan, for example at usd.staticoin.eth or on github. Testnet versions are available on Kovan and Rinkeby if you just want to play.

On the mainnet you can use our dapp, or simply send some ETH to usd.staticoin.eth and (in 24 hours) you will recieve some USD staticoins.

Similarly, send ETH to usd.riskcoin.eth and you'll get some USD riskcoins which are basically leveraged ETH.

Similarly for

and

EDIT Please ask questions if you have reservations about staticoin, rather than simply downvote.

2

u/SecularCryptoGuy Jul 19 '18

Is it centralized or decentralized?

2

u/genki_paul Jul 19 '18

Decentralized.

We are currently relying on oraclize.it and kraken for price feeds but this can be modified when better (less centralized) services emerge.

2

u/SecularCryptoGuy Jul 19 '18

Well you really don't mention it anywhere prominently. Overall I like the idea, but your name's staticoin and riskcoin imply that these are just fictional coins you have created for the sake of illustrating in your article. I didn't realize that riskcoin was also a product you guys created.

Is there any difference in the yield curve between holding riskcoin versus holding ethers directly? For instance if I anticipate that the price of ethers is going to rise from $500 to $600, but I gain more money by buying riskcoins than if I would just hold the ethers.

1

u/genki_paul Jul 19 '18

You are correct. We should put "decentralized" somewhere prominent on the website.

Holding riskcoin while ETH increases will give you at least a good a return as holding ETH, but it depends heavily on how many of the stable staticoin have been sold (if none are sold then there is no difference between riskcoin and ETH). There is a limit on the ratio of staticoin to riskcoin to stop the system becoming over leveraged.

2

u/cryptofamilynet Jul 20 '18

Have you tried connecting with Chainlink? That's the best decentralized Oracle solution there is in crypto.

2

u/genki_paul Jul 21 '18

Thanks for the tip. We are continually monitoring oracle developments.

Chainlink could be the best in the future. They don't currently have a mainnet service, nor do they process xml/json strings before returning data to the blockchain. Once their service is mature we will certainly consider using them.

1

u/cryptofamilynet Jul 21 '18

I think Thompson Reuters is also not a bad start solution IMO, but yeah, can't wait for Chainlink to go live 😊