Sorry guys for late reply.
I was thinking that this would work without depending on fiat like Tether does.
Most fiat have no intrinsic value by the way. I see no reason why Bitcoin should depend on any. Better to let the experts create a Stable Bitcoin that is very Decentralized than copying a system created by politicians?
Stable compared to what? You are surely referring to fiat currencies, and in order to achieve that you need, at the very least, some reference for the value of, say USD which has to come from somewhere.
After that you need a way of achieving a nash-equilibrium whereby undervaluation rewards buyers and overvaluation rewards sellers. Markets are a perfectly suitable way to achieve this.