I foresee that the #GENIUSAct will mark the start of a new wave of crackdown on #crypto similar to the crackdown we’ve seen on #privacy coins/layers but instead the pressure will be applied to parties involved with non-compliant #stablecoins. Like for privacy, the best answer will be extreme decentralization where no single dev can be single out and targeted for publishing “non-compliant” code.
#DeFi #Stablecoin
I read a lot of stablecoin whitepapers and I never could find a stablecoin that legitimately graduates from "trust-minimized peepee poopoo garbage with sprinkles on top" to "trustless." I don't think it's possible.
the closest I ever saw was an unpegged stablecoin whose contract stares at external uniswap USDT pairs before deciding how much ETH needs to be backing it so that it has enough volatility dampening to appear stable. the whole thing can't work in a vacuum. other attempts involve simple overcollateralization of things like USDC. if they don't allow centralized stables in the collateral, they lose their peg, so they just become USDC proxies. I wonder what will happen to freezeable USDC that is being used to prop up pretend decentralized stablecoins.
Have you looked into #fxUSD from the f(x) Protocol? They have a quite innovative design. There is also Curve that launched #CRVusd that looks interesting as well. Decentralized #stablecoins is certainly an area that is the most active in #DeFi right now but I agree that a lot of designs rely on USD-backed stablecoins and aren’t very decentralized.
#Stablecoin #crypto
