[LIST] List of decentralized Stablecoins

[cr197]

Bitbay has a rolling peg that has been in development for a few years now... almost at release stage.

Good to see BitBay (BAY) on the list.
They recently released their dynamic (and decentralized) peg whitepaper here:

http://bitbay.market/downloads/whitepapers/bitbay-dynamic-peg.pdf


It is going to be much different than these other pegs, which are tied to collateral.
Investors will have an opportunity to make gains while storing their profits, and allows the price to slowly fluctuate based on a decentralized user voting system. Similar to a crawling peg in some ways, but without the downside of having to maintain reserves.

Keep an eye out for release around Q3, 2018.

Agreed. Hard pegged currencies give very little incentive to hold. The real winner will be a soft peg that provides the best of both worlds. Price can still breathe, but major manipulation gets punished.
Provides the best opportunity for growth potential over time.

And what makes it even better is that all these new stablecoins are incomplete in regards to decentralized transactions for goods and services.
They will all require a middleman service to provide security for such deals (exchange, marketplace, etc).

While BitBay already has a trustless decentralized marketplace to trade any goods or services on. It's already built into the wallet. No middleman means no fees, invasion of privacy, or fear of theft from hacks or collusion.

So in a sense...
BitBay has solved Crypto 1.0 = completely remove the need for a middleman.
And by late Q3 to early Q4 of this year, it will have solved Crypto 2.0 = stabilize price so it can be used as a currency
And for an added bonus... Crypto 2.1 as well... stabilize price without the need for point of failure collateral or point of failure reserve tokens, which makes it a 100% trustless, decentralized peg protocol with the highest potential ROI.

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[Reedus]

For anyone interested, I did a review of the stablecoin landscape in 2018 here: https://steemit.com/cryptocurrency/@reedus/a-review-of-the-stablecoin-landscape-in-2018

https://cdn.steemitimages.com/DQmcjkj3WRF9qnwdDo1cgUrk6EtVaa9SYZH4Y2tpAd1wN2c/ComparisonChartPolished.PNG

[CoinCodex]

Many people think that this year is the year of stablecoin, based on the bear market and everyone just waiting for the market to wake up while holding their value in USDT or other stablecoins.
This year there were established many new stable coins, another one will be released shortly, by Circle.

https://coincodex.com/article/2402/circle-and-centre-consortium-release-usdc-stablecoin/

[Hosam Mazawi]

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

A stablecoin is typically backed by a reserve asset that has the exact equal value of the coin/token. The backup reserve can be a fiat currency, a precious metal (e.g. gold), or a cryptocurrency. The issuer, whether it is a central entity, or under control of a DAO, should only issue an amount of stablecoins equal to the backup reserve they own. New coins can be issued only when the backup reserve grows.

Read the full guide

[Ewinsane]

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

A stablecoin is typically backed by a reserve asset that has the exact equal value of the coin/token. The backup reserve can be a fiat currency, a precious metal (e.g. gold), or a cryptocurrency. The issuer, whether it is a central entity, or under control of a DAO, should only issue an amount of stablecoins equal to the backup reserve they own. New coins can be issued only when the backup reserve grows.

Read the full guide

For real, if we are terming stable coins here, then that actually makes them pegged to something and in that case they are controlled, which rules out the fact of having some decentralized stable coin.

You have clearly stated a whole lot of examples of stable coins and the fact that what makes a stable coins what it is, is the fact that it is backed by a reserve asset which in this case is what the market is pegged to and coming up with some theory of having decentralized stable coin based on this thread, sound like something unrealistic to me. As long as it is stable, as far as I am concerned, it is centralized.

[dababe]

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

A stablecoin is typically backed by a reserve asset that has the exact equal value of the coin/token. The backup reserve can be a fiat currency, a precious metal (e.g. gold), or a cryptocurrency. The issuer, whether it is a central entity, or under control of a DAO, should only issue an amount of stablecoins equal to the backup reserve they own. New coins can be issued only when the backup reserve grows.

Read the full guide

For real, if we are terming stable coins here, then that actually makes them pegged to something and in that case they are controlled, which rules out the fact of having some decentralized stable coin.

You have clearly stated a whole lot of examples of stable coins and the fact that what makes a stable coins what it is, is the fact that it is backed by a reserve asset which in this case is what the market is pegged to and coming up with some theory of having decentralized stable coin based on this thread, sound like something unrealistic to me. As long as it is stable, as far as I am concerned, it is centralized.

I agree. The stability of the coin is governed by some sort of external centralized entity. If your 'stable'coin is backed by gold, what happens when Gold crashes from $1400 to $300?

[dreamax25]

Huobi developed an interesting integrated solution called HUSD that targets multiple stablecoins. The feature will allow users to deposit USDC, GUSD, PAX, and TUSD to Huobi, and the equivalent amount of HUSD will show up on the user’s Huobi account.

https://coincodex.com/article/2516/huobi-introduces-husd-solution-to-simplify-stablecoin-trading/

[Kaznachej123]

  Stablecoin? Such assets are not stable at all. They rise and fall with the dollar price as example. You can use a direct fiat pairing as well, same result & no need to create „stablecoins“ Unpopular Opinion: A stablecoin literally does exactly what BTC was meant to solve. Fast transfers of money. 24/7 access.

[CP_Processor]

We are currently performing reviews of decentralized and regulated stablecoins.
Reviews done so far:

TrueUSD - https://medium.com/cp-processor/stable-coin-review-trust-token-tusd-60bc0a3178f2
Gemini Dollar - https://medium.com/cp-processor/stable-coin-review-gemini-dollar-gusd-7f3ad1ac18d4
USD COIN - https://medium.com/cp-processor/stable-coin-review-usd-coin-usdc-c7cf78c81dfb
Paxos Standard - https://medium.com/cp-processor/stable-coin-review-paxos-standard-pax-892ef3fd24c8

They explain how these stablecoins work, their trading pairs, procedures for buying and redeeming them, and a lot more

[HeRetiK]

We are currently performing reviews of decentralized and regulated stablecoins.
Reviews done so far:

TrueUSD - https://medium.com/cp-processor/stable-coin-review-trust-token-tusd-60bc0a3178f2
Gemini Dollar - https://medium.com/cp-processor/stable-coin-review-gemini-dollar-gusd-7f3ad1ac18d4
USD COIN - https://medium.com/cp-processor/stable-coin-review-usd-coin-usdc-c7cf78c81dfb
Paxos Standard - https://medium.com/cp-processor/stable-coin-review-paxos-standard-pax-892ef3fd24c8

They explain how these stablecoins work, their trading pairs, procedures for buying and redeeming them, and a lot more

None of the above stablecoins are decentralized. Every single one of them is backed by either a centralized exchange or some other form of third party requiring trust.

[boomboom]

We are currently performing reviews of decentralized and regulated stablecoins.
Reviews done so far:

TrueUSD - https://medium.com/cp-processor/stable-coin-review-trust-token-tusd-60bc0a3178f2
Gemini Dollar - https://medium.com/cp-processor/stable-coin-review-gemini-dollar-gusd-7f3ad1ac18d4
USD COIN - https://medium.com/cp-processor/stable-coin-review-usd-coin-usdc-c7cf78c81dfb
Paxos Standard - https://medium.com/cp-processor/stable-coin-review-paxos-standard-pax-892ef3fd24c8

They explain how these stablecoins work, their trading pairs, procedures for buying and redeeming them, and a lot more

None of the above stablecoins are decentralized. Every single one of them is backed by either a centralized exchange or some other form of third party requiring trust.

If you need to complete kyc aml for any of these stable coins they are useless in trustless exchanges.

[d5000]

The Basis/Basecoin project unfortunately was discontinued:  

As such, we are sad to share the news that we have decided to return capital to our investors. This also means, unfortunately, that the Basis project will be shutting down.

They cite regulatory issues. But maybe a similar idea, but managed in a decentralized way (without ICO and income source for the developers), could be implemented?

[CP_Processor]

How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?

[canaveralnonie]

How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?

Yeah, those thing is unfamiliar to me. Maybe, I need to know more about this crypto currency ( all I knew is tokens and altcoins ). That's why I always visit some website like coinmarketcap.com and etc. I am well satisfy on those website if I want to monitor those stable altcoins where I invest with.

But this thread caught my interest as a crypto user, please give me time to know it.

[monsterer2]

OP, I'm not sure if you're aware of bitmex.com? They run a 'fixed' version of bitUSD on their centralised exchange where both shorts AND longs pay/receive interest based on the deviation of the price from the peg.

Essentially, a 1x leverage short on bitmex is a bitUSD equivalent.

I know this cannot feature in your list of decentralised coins, because its neither decentralised, nor a coin, but for purely academic purposes I find this very interesting indeed.

[CP_Processor]

How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?

Yeah, those thing is unfamiliar to me. Maybe, I need to know more about this crypto currency ( all I knew is tokens and altcoins ). That's why I always visit some website like coinmarketcap.com and etc. I am well satisfy on those website if I want to monitor those stable altcoins where I invest with.

But this thread caught my interest as a crypto user, please give me time to know it.

Stablecoins are a specific type of cryptocurrency. They are designed to always hold its peg. For example, if they are fixed to a dollar peg, their price should always be 1 dollar. If you check those stablecoins on coinmarketcap, you will see that their price is always 1 dollar (or in the near vicinity of a dollar). USDT, USDC, TUSD, GUSD, PAX are the ones to check. They have the greatest market cap right now, and they are all fiat collateral type of stablecoin.

There are two more types of stablecoins - crypto collateral, and algorithmic, but for some reason they are not widely accepted in this ecosystem.

[d5000]

How do you explain this phenomenon that no one really likes these centralized stablecoins, yet they are the ones with the greatest market cap among stablecoins?

Because they're much more easy to manage, I think - Dai or BitUSD for exchanges are a complete headache because they can get "settled" (their inner workings can change completely in some situations, like BitUSD did a couple of weeks ago, up to the coins automatically being converted into the currency forming the collateral). And also, if they're well managed and you really get 1:1 from the business managing it, they can offer almost perfect stability versus the fiat currency.

But they are not really something different than other IOUs like the "PayPal USD" or the "Bitstamp USD", and so technically they're not really interesting.

OP, I'm not sure if you're aware of bitmex.com? They run a 'fixed' version of bitUSD on their centralised exchange where both shorts AND longs pay/receive interest based on the deviation of the price from the peg.

Thanks. You're right, that's not for my list, but anyway interesting. I'll take a look at it ...

[missyqt29]

Nice writeup. While I don't follow Stablecoins all that closely it definitely is interesting to see a comprehensive list of approaches at controlling volatility.

I'm not quite convinced that stability can be reliably achieved within tolerance levels that are acceptable for the general populace (say, < 5%) but they do give an opportunity to look at market forces in wholly new ways.

I don't really find the reason how stable coins are beneficial in the market? Can someone quote and answer this question? but I guess this stable coins will going to help large business investors who entered the market.

[CP_Processor]

Nice writeup. While I don't follow Stablecoins all that closely it definitely is interesting to see a comprehensive list of approaches at controlling volatility.

I'm not quite convinced that stability can be reliably achieved within tolerance levels that are acceptable for the general populace (say, < 5%) but they do give an opportunity to look at market forces in wholly new ways.

I don't really find the reason how stable coins are beneficial in the market? Can someone quote and answer this question? but I guess this stable coins will going to help large business investors who entered the market.

There are many benefits for using stablecoins

They can be:
1.Tool for traders (hedge against volatility)
2. Long term asset stability for investors
3. Currency to facilitate cross border payments...

[tradersnow]

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

A stablecoin is typically backed by a reserve asset that has the exact equal value of the coin/token. The backup reserve can be a fiat currency, a precious metal (e.g. gold), or a cryptocurrency. The issuer, whether it is a central entity, or under control of a DAO, should only issue an amount of stablecoins equal to the backup reserve they own. New coins can be issued only when the backup reserve grows.

Read the full guide

For real, if we are terming stable coins here, then that actually makes them pegged to something and in that case they are controlled, which rules out the fact of having some decentralized stable coin.

You have clearly stated a whole lot of examples of stable coins and the fact that what makes a stable coins what it is, is the fact that it is backed by a reserve asset which in this case is what the market is pegged to and coming up with some theory of having decentralized stable coin based on this thread, sound like something unrealistic to me. As long as it is stable, as far as I am concerned, it is centralized.

I agree. The stability of the coin is governed by some sort of external centralized entity. If your 'stable'coin is backed by gold, what happens when Gold crashes from $1400 to $300?

Exactly.