VaultCoin

VaultCoin is my idea for a cryptocurrency that can eliminate both inflation and deflation. It is similar to other cryptocurrencies except it has a special
feature called ‘the vault’.

The Vault
The vault is a user of VaultCoin, but it isn’t a human, it’s a decentralised application. The vault has the unique ability to create and destroy VaultCoins
from nothing.

Other Cryptocurrencies
The vault has regular user accounts for all other major cryptocurrencies. The IDs and balances of these accounts are publicly available, but no one can access
them.

Converting to VaultCoin
Users are able to transfer any major cryptocurrency to one of the vaults accounts, and it automatically creates VaultCoins of equal value from nothing, and
sends them to the user in return.

Buying from the Vault
Users can buy other cryptocurrencies from the vault by sending it VaultCoin. The vault pays the user equal value of the requested cryptocurrency to a given
account, and destroys the VaultCoin it’s sent.

Tied To Other Cryptocurrencies
Being able to buy and sell from the vault effectively means VaultCoin is tied to all the cryptocurrency inside the vault. The value of cryptocurrency inside
the vault is equal to the value of VaultCoin in circulation. This offers a more stable currency.

No Deflation
A high demand of VaultCoin won’t cause their value to increase like it does with BitCoin. With BitCoin there is a limited amount of currency in circulation,
so if demand increases then so does the value of a single coin. But when people want to buy VaultCoin more are created, keeping their value constant.

No Inflation
If demand of VaultCoin is low and people are selling, the amount of VaultCoin in circulation will decrease keeping their value constant as well. Also, no
VaultCoin is created without the market cap (value of the vault) of VaultCoin increasing so there is no steady inflation like there is with fiat currencies.

VaultCoin value can actually change
The value of VaultCoin can actually change. This happens when the value of the vault changes due to the changing values of the cryptocurrencies inside it.
To avoid this you could allow users to pay for VaultCoin with fiat currency, but that would mean VaultCoin could be tied to fiat currencies which defeats the whole purpose.

Please tell me if there is a problem with this idea or if there is a crypto which already uses it.