Nice writeup. While I don't follow Stablecoins all that closely it definitely is interesting to see a comprehensive list of approaches at controlling volatility.
I'm not quite convinced that stability can be reliably achieved within tolerance levels that are acceptable for the general populace (say, < 5%) but they do give an opportunity to look at market forces in wholly new ways.
Topic: [LIST] List of decentralized Stablecoins - page 3. (Read 722 times)
We're currently seeing some movement in the development of "stable" cryptocurrencies. "Stablecoins" are designed to have a low volatility. Most of them are pegged to a base asset, like the US dollar. For an introduction to the topic, read this article on Hackernoon.
This list has the goal to track their development and their success (or failure) in terms of stability.
The list is ordered chronologically, according to the year of launch. Only decentralized coins are permitted, no "IOU" coins managed by a central entity - this is why you won't find Tether and similar coins in this list.
If you know another decentralized Stablecoin project I forgot, feel free to comment - I'll add it ASAP.
2014: BitShares (BitUSD, BitCNY etc.)
2014: NuBits (USNBT)
2016: Steem Dollar (SBD)
2017: MakerDAO / Dai (DAI)
2018: Havven / eUSD (eUSD)
Project: Basis (formerly Basecoin) (Basis)
Project: RadixDLT (formerly eMunie)
Project: Carbon
Project: BitBay (BAY)
Concept: Seigniorage Shares
This list has the goal to track their development and their success (or failure) in terms of stability.
The list is ordered chronologically, according to the year of launch. Only decentralized coins are permitted, no "IOU" coins managed by a central entity - this is why you won't find Tether and similar coins in this list.
If you know another decentralized Stablecoin project I forgot, feel free to comment - I'll add it ASAP.
2014: BitShares (BitUSD, BitCNY etc.)
- Description: Independent blockchain with a multi-asset system, featuring a base asset (BitShares) and pegged assets or "smartcoins" (BitUSD, BitCNY, BitBTC etc.). The blockchain is secured with the DPoS consensus method (BFT-based).
- Pegged: Yes, to fiat currencies, cryptocurrencies and other assets
- How the peg works:An "oracle" mechanism tracks the target price of the base asset (e.g. the USD) in BitShares. Users can enter a "short contract" creating smartcoins (e.g. BitUSD) depositing a big (2x the target price of the created smartcoins) collateral in BitShares. The "shorter" can profit if the BitUSD price in relation to BitShares goes down, but he has to pay back part of the collateral if he closes the contract with a lower BitShares price. If the BitShares price goes down more than 70% and the contract is still active, the short is auto-liquidated and the "shorter" loses his entire collateral.
- Stability: Medium to Good (small peaks with up to ~20% deviation)
- Price evolution: see BitUSD on Coinmarketcap
- Website: bitshares.org
2014: NuBits (USNBT)
- Description: A two-asset system on an independent blockchain. NuShares is the base asset, while NuBits is a pegged asset that is pegged to the US dollar.
- Pegged: Yes, to the USD
- How the peg works: A group of decentrally-designated (by PoS vote) "custodians" regulates the price by holding reserves and buying and selling NuBits on exchanges, earning rewards for it. NuBits can be "parked" (taken out of liquid supply) temporarily in low-demand phases, "parkers" earn rewards.
- Stability: Bad (had long stable phases, but the peg broke in 2016 with up to 90% deviation to the downside, but recovered, in 2018 it broke again to the downside)
- Price evolution: see Coinmarketcap
- Website: nubits.com
2016: Steem Dollar (SBD)
- Description: A "stablecoin" asset on the Steem blockchain, which also features two other currencies: "Steem" and "VESTs" (called "Steem Power").
- Pegged: Yes, to the US dollar.
- How the peg works: An oracle tracks the USD price. The system allows SBD holders to convert them 1:1 to the current USD market price in Steem on the blockchain, but the process (on purpose) takes 1 week.
- Stability: Bad (deviations of 1000%+ to the upside - up to 13 USD - but the coin never fell significantly under 1 USD).
- Price evolution: see Coinmarketcap
- Website: steem.io
2017: MakerDAO / Dai (DAI)
- Description: Part of the MakerDAO project. The system works on the Ethereum blockchain as a system of smart contracts ("Dapp"). Additionally to DAI there is another token called MakerShares.
- Pegged: Yes, to the USD
- How the peg works: The "base system" is similar to BitUSD: People can create Dai locking a collateral in Pooled Ether to the "target price" tracked by an oracle. There is however an additional stability mechanism which in low demand periods rises the target price (to reduce the incentive for the creation of Dai and promote selling), while in high-demand periods it does the opposite (to create incentives for creation/buying). Additionally, an emergency system called "global settlement" can dissolve all contracts in case of severe malfunction.
- Stability: Good, but less than a year on the market
- Price evolution: see Coinmarketcap
- Website: makerdao.com
2018: Havven / eUSD (eUSD)
- Description: Dapp (Smart contracts) on the Ethereum blockchain with two kinds of tokens: Havven and stable "nomins"
- Pegged: Yes, to the USD
- How the peg works: Relatively similar to BitShares: Users can create stable "nomins" with up to 20% of their Havven holdings (the rest is locked as collateral).
- Stability: Recently launched
- Price evolution: still not listed on Coinmarketcap
- Website: havven.io
Project: Basis (formerly Basecoin) (Basis)
- Description: Independent blockchain with three assets: "share tokens", "bonds" and "basis" coins.
- Pegged: Yes, to the USD - in the future, other pegs are planned
- How the peg works: In low-demand periods, Bonds are auctioned and the "basis" stable coins which were used to buy them are burnt. In high-demand periods, Basis coins are created and distributed to bond holders, with a first-come-first-served mechanism that incentives early bond buying. Bonds can expire and in this case they're burnt, so buyers have to take some risk.
- Website: basis.io
Project: RadixDLT (formerly eMunie)
- Description: Independent ledger with custom algorithm. Closed-source/patented. Currently in beta.
- Pegged: No
- How the peg works: The system tracks the prices of different goods and services on an on-blockchain market and adjusts the supply accordingly. There is no hard peg, but volatility is meant to be reduced this way.
- Website: RadixDLT.com
Project: Carbon
- Description: Independent ledger with the Hashgraph algorithm. Two currencies (Carbon Stablecoin and Carbon Credit) Patented (Hashgraph). Not released.
- Pegged: Yes, to the USD
- How the peg works: Very similar to Basecoin: In low-demand periods, Credits are auctioned and the stablecoins which were used to buy them are burnt. In high-demand periods, stablecoins are re-distributed to Credit holders.
- Website: carbon.money
Project: BitBay (BAY)
- Description: Independent blockchain with liquid and "frozen" tokens. The cryptocurrency already exists, but the peg is still not implemented.
- Pegged: "Dynamic Peg" - users vote if the target price should go up or down.
- How the peg works: In low-demand periods, a part of the supply is frozen. In high demand periods, currency is created and distributed to holders, and frozen funds are returned to be liquid. More details will be available in a whitepaper that is planned for July 2018.
- Website: BitBay Dynamic Peg
Concept: Seigniorage Shares
- Description: Whitepaper that never was concreted, but the Basis concept is based partly on it.
- Pegged: Yes, can be pegged to any asset.
- How the peg works: In low-demand periods, an asset is sold and the "stablecoins" used for these trades are burnt. The asset pays out a kind of "dividend" to incentive these exchanges. The asset in high-demand periods can be again transformed into stablecoins.
- Website: Whitepaper on bravenewcoin.com
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