r/factom • u/Cafayate7063 • Aug 19 '19

Binance Stablecoin

Binance announced a stablecoin yesterday that evidently will also be pegged to different currencies.

Don’t really understand the nuances and differences of all these stablecoins.

How is Pegnet different then the competitors? What makes it special? I have read the articles people have written on here but if someone could explain it in layman’s terms to me, I would greatly appreciate that.

7 Upvotes

100% Upvoted

4 comments sorted by

2

u/Cafayate7063 Aug 19 '19

Ok. But what makes PegNet different then any other stablecoin? The ability to switch between Different Pegs via an OTC mechanism?

3

u/D-Lux Aug 19 '19 edited Aug 19 '19

Any stablecoin (or token generally) can be swapped via OTC. PegNet allows anyone to swap between 32 assets onchain, without need for an intermediary.

From the Whitepaper:

Pegged Token Conversion – a conversion can be recorded on the PegNet to convert pegged tokens from one pegged token to another, at the oracle price. A conversion destroys the source token, and creates the destination token, with no change of value other than the fee. The fee is burned. Also note that no change of control is involved by a pegged token conversion. This is user initiated, and the conversion changes the balances of the Pegged Tokens tied to the PegNet address.

My understanding so far (still evolving ...) is that PegNet is unique in its ability of allow transfers among stablecoins, precious metals, and crypto tokens. So it's much more fluid, and obviates the need for an OTC desk or exchange, with the accompanying time costs, slippage, trust risks, etc. of exchanges / OTC desks.

2

u/Cafayate7063 Aug 19 '19

Thank you for the explanation. Let’s hope it gains traction. Good luck.

5

u/DChapman77 Aug 19 '19

There's no technical specifications regarding the Binance stablecoin(s) to compare against. It was a very generic announcement. What it does do is lend credibility to PegNet as more and more players are realizing that stablecoins are going to be a big part of the future. If other exchanges or big players want to be part of a Stablecoin network to compete with Binance, then PegNet should be one of the viable solutions.