A native bitcoin-only backed US Dollar stablecoin.
Borrow stablecoins against bitcoin as collateral.
1. Permissionless and open-source protocol (hard coded)
2. Non-custodial
3. Censorship resistant
4. Privacy oriented by default
5. Confidential transactions
6. For-profit business
7. Sustainable and transparent business model
8. Fixed interest rate
9. No time limit for repayment of loan
10. No KYC
11. No coincontrol (freeze/reverse is not possible)
Your thoughts?
The problem:
I advocate for a bitcoin-only world and am opposed to utilizing the US Dollar, which I consider to be the largest pyramid scheme globally. Nevertheless, given the current global landscape, everyday individuals find themselves urgently needing to distance themselves from their local currencies—such as the Argentine peso, Venezuelan bolivar, Turkish lira, Iranian rial, among others. These individuals lack the time and inclination to become well-versed in the principles of sound money and the flaws of fiat currency. Their primary goal is to acquire a better form of currency compared to what they possess locally, asap!
Unfortunately, the US Dollar remains the most reliable currency worldwide at this moment, prompting individuals in these nations to seek payment in and prefer transactions using US Dollars, rather than relying on their local currencies or bitcoin.
The present stablecoin market is a shitshow. The majority market share is held by Circle and Tether, centralized entities equipped with the authority to halt and undo transactions involving USDC and USDT on any blockchain they are issued on. This is a mini-version of the future CBDC.
Additionally, there's a necessity for people to trust that these two industry giants genuinely possess a one-to-one dollar reserve in their banks backing the stablecoins, and further, trust in the stability of their banks. Given the frequent occurrence of fractional reserves, corruption, and financial insolvency in this sector, these concerns are valid.
Compounding these issues, individuals requiring a "stable" currency like USDC/USDT are currently utilizing the solution on the Tron blockchain for transacting with these stablecoins. Clearly, a far superior solution is needed.
This prompts my extensive investigation and analysis to propose an improved alternative. The bullet points preceding this text outline the aspects I believe could be developed and be a better stablecoin solutions until bitcoin will become a medium of exchange in the future, hopefully.
I am interested in your perspective—do you believe the market demands a new stablecoin characterized by resistance to censorship, sole backing by bitcoin, and a strong emphasis on privacy?
