1/18
I’d like to address the second one: what happens if you try to peg the stablecoin to an index that goes up 20% per year?
Vitalik claims that it will turn out as either of two ways:
2/18
Sep 13, 2020 • 22 tweets • 4 min read
@AndreCronjeTech@iamDCinvestor StableCredit USD is an intriguing borrowing, trading and stablecoin system with the following neat properties:
- Stablecoin has an intrinsic use as a transfer currency
- No interests
- No governance
- No liquidations
- Simple and elegant system
Though, let’s take a closer look and see how the system works and why it cannot guarantee a fully backed stablecoin supply.
Suppose that equal values of tokens A, B, C are already in the system, i.e. each token contributes with 33.3% to the total value of all collateral.
