# Stablecoins

## stablecoins



### fiat FX basket with the links to crypto-world

A couple of projects [ACChain](http://www.acchain.org/en/acc_intro.html) and [Globcoin](https://globcoin.io/)

For the technical aspects, see also [Saga paper](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/1816/saga-whitepaper.pdf)
see diagrams in particular
> To interface with traditional institutions, Saga requires a degree of centralised
> implementation. We ensure transactions are both transparent and immutable. Our
> discovery tools allow participants to monitor system transactions, allowing participants to
> assess the integrity of governance. 

### thoughts (MT)

 Ideally, a stablecoin can be a good anchor for cryptoasset class. But the future depends on the fiat-crypto connection, which is highly dependent on the regulations.
 **MT - I am personally sceptical that the idea of stablecoin is consistent** My opinion is close the opinion of Albert Wenger [The Quest for a Stable Coin](https://continuations.com/post/168330457810/the-quest-for-a-stable-coin), i.e. more questions than answers.
 
february 2018 - a good review of ALL main stablecoins is [the last section of the Basecoin whitepaper](http://www.getbasecoin.com/basecoin_whitepaper_0_99.pdf)


Important attempt to answer [Could a crisis of confidence cause a death spiral in the system?](http://www.basis.io/article/could-a-crisis-of-confidence-cause).
Not convincing to me and to [Basecoin (aka the Basis Protocol): the worst idea in cryptocurrency, reborn](https://prestonbyrne.com/2017/10/13/basecoin-bitshares-2-electric-boogaloo/)
 
From one side, a stablecoin needs to be connected with real world (and maybe fiat or real assets). From another side, growing projects cannot have artificial stability. "Anti-fragility" (of Taleb) means some volatility, and perhaps, the idea

Another appropriate sceptical view series [Stablecoins are doomed to fail, Pt. III: SAGA](https://prestonbyrne.com/2018/03/22/stablecoins-are-doomed-to-fail-pt-iii-saga/)

science fiction not based on reality ??? [A Plethora of Stablecoins: Price-Stable Protocol Utility Tokens](https://hackernoon.com/a-plethora-of-stablecoins-price-stable-protocol-utility-tokens-c6805ae6f25e)

### Vitalik and Preston Byrne

Stablecoins are "synthetic assets", which are very familiar in the financial industry. Examples include ETF, CDO, etc. But is it very natural asset? [The discussion between a supporter, Vitalik, and a critic, Preston,](https://twitter.com/vitalikbuterin/status/987743110250758149?s=11) raise important points of tail risk, capital inefficiency, and the trading bots supporting the price.

> Vitalik - A distinction without a difference. DAI is about getting exposure to the dollar without holding it.
> @prestonjbyrne - That's my point. DAI isn't an exposure to USD. As of today, it is an exposure to Ether.

## how to create positive convexity projects?

[Short Convexity - The big problem awaiting token teams](https://medium.com/@jillcarlson/short-convexity-8793f18629bb)

## how to hedge ICOs... and whole projects?

[DeHedge - Risk-hedging platform for cryptocurrency investors](https://dehedge.com/)
I(MT) have been talking to some people on the project. The idea is very similar to CVA (Credit Valuation Adjustment) hedging.

## mechanisms of stabilization

[Volatility Insurance and the MakerDAO platform](https://hackernoon.com/volatility-insurance-and-the-makerdao-platform-aaf9e8502b7a) by Yotam Gafni [The Stable Coin — A Cryptocurrencies Philosopher’s Stone](https://hackernoon.com/the-stable-coin-a-cryptocurrencies-philosophers-stone-dae88753cb86)

[Stablecoins: designing a price-stable cryptocurrency](https://hackernoon.com/stablecoins-designing-a-price-stable-cryptocurrency-6bf24e2689e5)
The classification of stabilization is being a) crypto collateral b) fiat collateral c) central bank actions and seniorage shares. Currency should be a stabilising mechanism for the larger economy, and the economics shows that stable FX-free capital flow - sovereign monetary policy is [Impossible Tirnity](https://en.wikipedia.org/wiki/Impossible_trinity).

# Parents

* Financial servicesTokenization

# Attachments

* [](https://knowen-production.s3.amazonaws.com/uploads/attachment/file/1816/saga-whitepaper.pdf)