All these existing stablecoins are focusing on a hard pegged solution which provide very little incentive to provide any ROI if people hold their capital within them. They are mainly used for the sake to hedge their capital in and out of volatile cryptocurrencies.
It's obvious that if anything of them require collateral then they are centralized and higher risk to decentralized solutions.
There are less than a handful that claim they are decentralized, and at best they are more a pseudo-decentralized version. Collateral and 'reserves' are not much different from each other in the fact that they 'require' trust.
There is a new design in development that doesn't utilize any sort of collateral or reserve token. It's truly decentralized - no trust is needed.
The whitepaper was just released last week.
The protocol is much different from other non-collaterals like Basis, Fragments, Kowala, and Carbon.
It's a dynamic peg. Price can still fluctuate but volatility will be controlled by both the coin holders who can vote on price stability or by allowing for an algorithm to automate the process.
BitBay will be the first coin in the entire industry that will have solved crypto 1.0 and crypto 2.0
Crypto 1.0 being the ability to completely remove the middleman from transactions.
Crypto 2.0 being price stability so that the coin can be used as a currency.
Of all the other stablecoins., none of them have yet to solve crypto 1.0, which will most likely take them years to develop and test if they were to mimic BitBay's trustless marketplace.
Since BitBay's price is not hard pegged, the potential ROI for actually holding the coin is literally exponentially higher than other hard pegged currencies. This is especially the case for fiat backed stablecoins where governments continue to devalue their prices by printing more than they can back.
Imagine using a hard pegged currency like tether to hedge against bitcoin's price volatility. You can only make money by correctly guessing you hedge in and out of bitcoin's ups and downs. You most likely lose money in the transaction from the exchange spread. Although it would be a small amount it's still a loss and would increase depending on the amount of equity traded.
Now imagine a soft pegged currency like BitBay as a hedging tool.
For example, you think Bitcoin is going to drop in value over the next few days. So you sell your Bitcoin for BitBay. And then it turns out you are correct. Now the rest of the 'herd' is in fear of their equity and they too sell their Bitcoin for BitBay. Yet this higher demand from the 'herd' causes the price of BitBay to go up in value. Now you foresee that the Bitcoin correction is at it's bottom. So you sell your BitBay for Bitcoin. So now you've increased your ROI because you sold your higher bitcoin for a lower BitBay and then sold your higher BitBay for a lower bitcoin.
If you miss your window of opportunity to renter Bitcoin at a lower price, then you can stake the capital you hold in BitBay for a variable ROI that is currently averaging around 2.7% APR. No hard pegged currency is going to reward you that much. And you have the assurance knowing that if the price of BitBay tries to drop your capital will be protected by it's dynamic peg algo that stabilizes the supply and demand on the exchanges. If this causes some of your capital to freeze in the process of waiting, then your temporarily frozen coins can stake for an even higher variable APR.
Hard pegged coins can't even remotely begin to mimic this other than weakly through a spread that most likely works against you.
Now imagine you want to cash out some of your profits. You use BitBay's cash for coins smart contract (already built into the wallet), that mimics like a "trustless" private localbitcoins.com transaction.
All these other stablecoins in existence can't compete against that. They are all dependent on a 3rd party service to allow for transacting with any level of pseudo-security.
Peg release is set for late Q3 to early Q4 2018
Whitepaper:
http://bitbay.market/downloads/whitepapers/bitbay-dynamic-peg.pdfWebsite: BitBay.Market
