Topic: [LIST] List of decentralized Stablecoins - page 2. (Read 722 times)

For anyone interested, I did a review of the stablecoin landscape in 2018 here: https://steemit.com/cryptocurrency/@reedus/a-review-of-the-stablecoin-landscape-in-2018

https://cdn.steemitimages.com/DQmcjkj3WRF9qnwdDo1cgUrk6EtVaa9SYZH4Y2tpAd1wN2c/ComparisonChartPolished.PNG

Agreed. Hard pegged currencies give very little incentive to hold. The real winner will be a soft peg that provides the best of both worlds. Price can still breathe, but major manipulation gets punished.
Provides the best opportunity for growth potential over time.

And what makes it even better is that all these new stablecoins are incomplete in regards to decentralized transactions for goods and services.
They will all require a middleman service to provide security for such deals (exchange, marketplace, etc).

While BitBay already has a trustless decentralized marketplace to trade any goods or services on. It's already built into the wallet. No middleman means no fees, invasion of privacy, or fear of theft from hacks or collusion.

So in a sense...
BitBay has solved Crypto 1.0 = completely remove the need for a middleman.
And by late Q3 to early Q4 of this year, it will have solved Crypto 2.0 = stabilize price so it can be used as a currency
And for an added bonus... Crypto 2.1 as well... stabilize price without the need for point of failure collateral or point of failure reserve tokens, which makes it a 100% trustless, decentralized peg protocol with the highest potential ROI.

Good to see BitBay (BAY) on the list.
They recently released their dynamic (and decentralized) peg whitepaper here:

http://bitbay.market/downloads/whitepapers/bitbay-dynamic-peg.pdf


It is going to be much different than the other stablecoin projects, which are tied to collateral.
Investors will have an opportunity to make gains while storing their profits, and allows the price to slowly fluctuate based on a decentralized user voting system. Similar to a crawling peg in some ways, but without the downside of having to maintain reserves.

Keep an eye out for release around Q3, 2018.

I have been working on an Ether-coupled stable price system, Zeny. Money over the period of years has existed with intrinsic and extrinsic attributes. I strongly believe stable private money must possess both intrinsic and extrinsic properties. The gold standard is a prominent example of such stable money possessing both intrinsic and extrinsic properties. The difficulty in acquisition of more gold to increase the circulating supply breaks the equilibrium of 1:1 ratio. To honestly support a global economy backed by gold would require an infinite amount of gold acquisition.

I am trying to express two simple principles,
a. Price system adjusts the circulating supply using dynamic reward rate to incentivize contraction.
b. Every Zeny is backed by a commodity (gas execution time) controlled by a set of decentralized actors. Assuming that the Ethereum universe UE maintain utility value, the time within the universe UE will have continual demand. Time would be an infinite resource supporting global circulating supply and verifiable using decentralized mechanisms.

The condition b. provides Zeny an intrinsic value and enforced exchange rate from zeny to that x amount of time brings advantages of extrinsic value.

The first draft of the concept is available at https://github.com/arne9131/Zeny/blob/master/Zeny_Next_generation_Money%20(2).pdf

Arne

I agree, this is a great list of stablecoins. In terms of major announcements, Havven has launched nUSD and they have an airdrop going on right now: https://blog.havven.io/announcing-the-nusd-airdrop-campaign-9ceb26810172

Great list!! Personally a big fan of Havven. Looks like nUSD is launching on June 11th. Thought it was cool that they had an estore where you can use their stablecoin to buy Apple products.

https://themerkle.com/now-you-have-another-way-to-pay-for-apple-products/

Unfortunately, that's impossible to predict. But for now I consider we have two "leaders" (that are also those with most volume/liquidity afaik) and one possible contender:

- BitUSD, because of its long tradition and relatively good stability
- Dai, because it is a sort of improved BitUSD (I think the improvements make sense), and is implemented on the Ethereum blockchain where a highly liquid DEX environment exists. I think the ETH pair is likely to be the one with the highest volume.
- in the future, maybe Basecoin - the model looks good from my point of view, and it seems to have also some industry support (e.g. from Google) although the peg itself will be probably weaker.

If you wanted me to pick only one, for now I would chose Dai (and Dai/Eth as the "reference market").

With respect to Havven, it's the stablecoin I maybe read less about, because it looks like a weaker variant of BitUSD, and it didn't really catch my interest. I may re-read its whitepaper so I can give a more qualified answer.

Thanks for the reply, I think I poorly worded my question - what I was wondering more was your take on what pair (asset/market) has the strongest lead in terms of decentralized stablecoins (what will rush to fill the vacuum of Tether if/when it fails)?

Also, do you consider Haven Protocol a stablecoin? Yes, offshoring is still a theoretical at this time, but... assuming it works as described.

I just found this excellent article on Hackernoon that explains stablecoins. It's a nice introduction to the topic, and the author takes similar conclusions than me, so I'll share it in the OP.

The author recommends to diversify into different stablecoins. An interesting follow-up question would be: What if someone creates a stablecoin backed by collateral in several other stablecoins, and tracked in a decentralized way? Wouldn't this be a sort of "super-stablecoin" with even better stability and less risk? And would it be factible?

A somewhat related idea from Vitalik Buterin: Collateralized Debt Obligations for Issuer-Backed Tokens

A quick look at Coinmarketcap:

- BitUSD seems to be traded mainly on the Bitshares blockchain (and the Bitshares-based OpenLedger DEX). In the markets section on CMC it isn't listed on other exchanges.
- BitCNY has also the greatest liquidity on the Bitshares asset exchange. But it is traded on some centralized exchanges, too (CoinTiger and BigOne, see markets) this is interesting as that means there are no technical reasons for the inexistence of BitUSD implementations at centralized exchanges. I remember also that BitCNY was listed on Bittrex or Poloniex(?) last year.
- Dai is listed on several centralized and decentralized exchanges, the biggest volume having Ethfinex and OasisDEX.
- Steem dollars are listed on several major exchanges including Bittrex, Upbit and Poloniex, the biggest volume, by far, is on Upbit.
- Nubits, surprisingly stays on Bittrex and Upbit, having most volume/liquidity on these both, they're also listed on "SouthXchange" (may be project-related).

The last both hardly qualify as a "stablecoin" anymore, but interestingly they haven't fallen to zero and are also traded a bit.

Really nice post, this topic is of great interest to me.

Any thoughts on which market and pairing will provide the best liquidity?

Thanks. I took a look at Globcoin (from your Bitcointalk nickname I infer that you're related to it). A basket-pegged "stablecoin" seems an interesting concept. I had also once started a thread about possible "basket-based" currencies, which unfortunately didn't get much attention. Fiat currencies often have long-term exchange rate movements and even can collapse (I'm not a fan of "Dr.Doom"-esque collapse prophets, however) and so a basket could help to mitigate these problems. I'm personally more interested in baskets of real-world-assets, e.g. gold/oil/wheat/soybeans.

Unfortunately, the Globcoin project seems to be centrally managed - similar to Tether, albeit a bit more trustable, it seems - so it's out of scope for this list.

A good read on Stablecoins:
https://medium.com/@globcoin_io/5-key-facts-about-stablecoins-571819f3b3fa

Thanks! I stumbled upon BitBay several times but it smelled like vapourware. In July the final whitepaper should be released according to the roadmap, then it becomes interesting. I added it as a "Project", and also added the older Seigniorage Shares concept because I think it has historical significance even if it was never released.

You are totally right.  Not only the supply problem I mentioned in the last post was fundamental. Also to rely on trading bots operating on traditional centralized exchanges was an error, I think - it's understandable as DEX technology was still in its infancy and not available for the Peercoin-based code (NXT, Bitshares, and Mastercoin, however, had a DEX already in 2014), but a blockchain-based exchange mechanism would have been better because a simple insolvency of one of these exchanges where the reserved tokens were stored would have been fatal.

Nevertheless it was an interesting attempt, because it's the first coin where the liquid supply was meant to react to demand changes.

The tale of Nubits is quite interesting. I've been reading their forums and it looks like there was a plethora of issues with that project as well as fundamental weaknesses that were never addressed.

The peg depended on certain parties providing liquidity. It was also depended on the second currency, nushares, being listed on exchanges with liquidity.

In the end of the day, reserves ended and now the market values NuBits much lower than 1$. This time it doesn't look like it's coming up like it did in 2016. The team behind it has been asking for bigger exchanges to list the project since the peg broke in march but their plea hasn't proved helpful. I think the structure was fundamentally flawed, be it that it was largely trust based even for a decentralized take on a stablecoin.

It was an early attempt but with all the recent competition in the field I wouldn't see the community trying to salvage it. With the team behind NuBits no longer trusted I don't see a way for it to recover.

Bitbay has a rolling peg that has been in development for a few years now... almost at release stage.

Yes, the goal is to track all coins which were planned as stablecoins and have a decentralized mechanism - also those that failed to achieve stability (that's why the "Stability" bullet point is there). Analyzing the model of a failed stablecoin, one can learn about the weaknesses of each mechanism. In the case of Nubits, for example, the problem was that it never really reduced its supply ("parked" coins would have better been "burnt", like Basis plans), and the Steem Dollar has imo a very weak peg mechanism, as it only tries to guarantee a "floor" of about $0.80 per SBD, but no "top".


You seem to believe that centralized authorities are needed for a peg. Think about mtGoxUSD . I admit I have used Tether in the past for very small amounts (mostly during the most volatile phase in December) but I wouldn't trust a centralized party for really large amounts - my strategy now is to diversify (use several stablecoins at once, preferring decentralized ones).

This is a very interesting list, because seen steam Dollar and Nubits there is very funny, Steem Dollar is never a Stable Coin it was planned to be but there was a time this was trading below $1 and also a time when it was above $2. To all these concept of decentralised Stable coin will not work. I still believe Tether is the only stable coin in the space, though it has some shortcomings but I will pick it ahead of any one on your list

I agree. However, I think a stablecoin becomes useful already if it is able to swing back in a relatively short time from an "overpriced" or "underpriced" phase to the "target price". The key is the ability of the "stablecoin" to attract confidence in its exchange rate. That's why I consider BitUSD a success until now, even if its stability was not perfect.

I have thought a bit about this list and got to the conclusion that the currently active stablecoins can be classified in two groups:

- Coins trying to adjust liquid supply to demand. In lower demand periods they activate a mechanism to reduce the liquid supply to reduce selling pressure. NuBits and the projects Seigniorage Shares, Basecoin and eMunie/Radix belong to this group.
- Coins where the stable coins in reality are contracts for difference (or similar "financial instruments") where a party (a speculator) takes the risk to lose a collateral, with the chance to earn profits in another asset (e.g. the BitShares currency or MakerDao Shares). This is the case of BitUSD, Dai and Havven, with Dai having a more complex stabilization mechanism.

For now it seems that the second group is more successful, as NuBits can be almost already regarded as a failed concept. The problem seems to be that it's difficult to really reduce supply - in the case of NuBits, the coins taken out of circulation were only "parked" and then could be re-inserted in the market. Basis/Basecoin (which seems to have partnered with Google) is, for me, a better intent as there is a real risk for "bond" buyers as bonds can expire if a low-demand period lasts too long. I'll observe this project closely.