Digital currencies are fundamentally changing the way we think about money and banking. The rapid rise of cryptocurrencies like Bitcoin, along with the
Algorithmic stablecoins that are actually unhackable (all possible endpoints have been formally verified) exist too. They offer the best of both worlds. I’d like to see something like that on Monero’s successor (whatever that is).
edit: I was thinking that successor would be Midnight…but Midnight is closed source, which is a dealbreaker for me…especially with cryptocurrencies. Perhaps ZCash?
So far at least no algorithmic stablecoin has properly functioned for any length of time. Take a look at the Terra Luna crash for just the largest example.
DJED seems to have escaped your notice. It has been humming along without incident for a full year now.
DJED is the first formally verified stablecoin protocol. The use of formal methods in the programming process has greatly contributed to the design and stability properties of Djed. Using formal techniques, the properties are proven by mathematical theorems:
*Peg upper and lower bound maintenance: the price will not go above or beyond the set price. In the normal reserve ratio range, purchases and sales are not restricted, and users have no incentive to trade stablecoins outside the peg range in a secondary market.
*Peg robustness during market crashes: up to a set limit that depends on the reserve ratio, the peg is maintained even when the price of the base coin falls sharply.
*No insolvency: no bank is involved, so there is no bank contract to go bankrupt.
*No bank runs: all users are treated fairly and paid accordingly, so there is provably no incentive for users to race to redeem their stablecoins.
*Monotonically increasing equity per reserve coin: under some conditions, the reserve surplus per reserve coin is guaranteed to increase as users interact with the contract. Under these conditions, reserve coin holders are guaranteed to profit.
*No reserve draining: under some conditions, it is impossible for a malicious user to execute a sequence of actions that would steal reserves from the bank.
*Bounded dilution: there is a limit to how many reserve coin holders and their profit can be diluted due to the issuance of more reserve coins.
Algorithmic stablecoins that are actually unhackable (all possible endpoints have been formally verified) exist too. They offer the best of both worlds. I’d like to see something like that on Monero’s successor (whatever that is).
edit: I was thinking that successor would be Midnight…but Midnight is closed source, which is a dealbreaker for me…especially with cryptocurrencies. Perhaps ZCash?
Doesnt have to be a successor to monero u can do parallel mining. Also i dont understand how can an algorithmic stable coin can exist?
So far at least no algorithmic stablecoin has properly functioned for any length of time. Take a look at the Terra Luna crash for just the largest example.
Thats actually 100% false.
DJED seems to have escaped your notice. It has been humming along without incident for a full year now.
Okay, I was not aware of that one, so I will look into it. Thank you for the information.
No problem. Thanks for being intellectually honest! I’ll file down the claws in my previous reply. :)