Relay - A Private Stablecoin System

[relaystablecoin]

With Tether, users have to trust that a centralized entity holds enough USD to back circulating Tethers. With Relay, a fully on-chain collateral mechanism means that users have full visibility into the decentralized backing of Relay Dollars, and they are able to redeem their XRD for collateral at any time.

[proo7]

I like your ad.I want to study your offer in more detail.
Who from the known developers participates in this project?

Our team leads are listed on our website. The technical lead and other developers may not be well known, but it is important to note that the newness of the blockchain space means that there are many skilled developers with very limited histories.

It should also be stated that very little in Relay is entirely new, and thus the technical base has largely already been proven out. The core blockchain is forked from Ethereum and the privacy implementation is also based on existing work. The codebase is furthermore currently undergoing third party private review and will be subject to a public bug bounty prior to mainnet launch, fundraising for which is one of the major motivating factors for the public round. The most important innovation Relay brings is in its collateralization mechanism and two-token structure, which is less a coding than economics invention.

if buy ICO, what will make my token value go up? how can relay investor profit?

We appreciate that the token economics are a key point for potential public round participants, so we will do our best to be clear as possible. The following has been added to the starting post as well.

The Relay Token (XRT) is what contributors receive in return for their public round funds. This token is the foundation for the value of the Relay Dollar through a system where XRT holders can 'lock up' their tokens in return for Relay Dollars (XRD) at any time and for any duration. XRT holders benefit from the success of the Relay stablecoin system in two ways:

1) If the value of XRD rises above $1.01, additional XRD is printed and sent to XRT collateral holders to provide selling pressure and decrease the price back down to the $1.00 peg. Thus, increased demand for the Relay Dollar provides a direct revenue stream to XRT holders.
2) As adoption of the Relay stablecoin system grows, the value of XRT increases due to demand driven primarily by the income stream described above. Thus, XRD adoption both leads to XRD being directly given to XRT holders as well as increasing value for the tokens themselves.

Thank you for answering.
I think you have some good points,
but since you will have token that is connected with Etherium value...
I don't see you will be able to make this sustainable.
We don't need stable coin that is on Etherium network

[relaystablecoin]

I like your ad.I want to study your offer in more detail.
Who from the known developers participates in this project?

Our team leads are listed on our website. The technical lead and other developers may not be well known, but it is important to note that the newness of the blockchain space means that there are many skilled developers with very limited histories.

It should also be stated that very little in Relay is entirely new, and thus the technical base has largely already been proven out. The core blockchain is forked from Ethereum and the privacy implementation is also based on existing work. The codebase is furthermore currently undergoing third party private review and will be subject to a public bug bounty prior to mainnet launch, fundraising for which is one of the major motivating factors for the public round. The most important innovation Relay brings is in its collateralization mechanism and two-token structure, which is less a coding than economics invention.

if buy ICO, what will make my token value go up? how can relay investor profit?

We appreciate that the token economics are a key point for potential public round participants, so we will do our best to be clear as possible. The following has been added to the starting post as well.

The Relay Token (XRT) is what contributors receive in return for their public round funds. This token is the foundation for the value of the Relay Dollar through a system where XRT holders can 'lock up' their tokens in return for Relay Dollars (XRD) at any time and for any duration. XRT holders benefit from the success of the Relay stablecoin system in two ways:

1) If the value of XRD rises above $1.01, additional XRD is printed and sent to XRT collateral holders to provide selling pressure and decrease the price back down to the $1.00 peg. Thus, increased demand for the Relay Dollar provides a direct revenue stream to XRT holders.
2) As adoption of the Relay stablecoin system grows, the value of XRT increases due to demand driven primarily by the income stream described above. Thus, XRD adoption both leads to XRD being directly given to XRT holders as well as increasing value for the tokens themselves.

Thank you for answering.
I think you have some good points,
but since you will have token that is connected with Etherium value...
I don't see you will be able to make this sustainable.
We don't need stable coin that is on Etherium network

It seems this point was poorly worded, so to be clear - the Relay Token / Dollar are not ETH tokens and their value is completely independent of Ethereum. The Relay stablecoin system's two tokens operate on their own blockchain that inherits much of Ethereum's technology but is completely independent of Ethereum in terms of network activity and valuation. This is similar to how companies such as VeChain heavily draw upon Ethereum for their codebase but are completely separate projects. Ethereum is the most proven smart contract platform and has done many things right, so there is no need to reinvent the wheel for the core functionality of a system that utilizes many of the features it offers.

We agree that stablecoins on the Ethereum network are neither needed nor sustainable - DAI is an example of a stablecoin that uses Ethereum as collateral, and we believe that this dependency on collateral with value outside of the stablecoin system introduces significant stability risks that are eliminated by creating an isolated economic system, which is the approach that the Relay stablecoin system takes.

[relaystablecoin]

Relay is designed to render Tether and other rudimentary stablecoin implementations obsolete - read more with our recently published think piece at https://medium.com/@RelayFoundation/why-relay-is-the-tether-killer-ffb2fc13c27

[proo7]

It seems this point was poorly worded, so to be clear - the Relay Token / Dollar are not ETH tokens and their value is completely independent of Ethereum. The Relay stablecoin system's two tokens operate on their own blockchain that inherits much of Ethereum's technology but is completely independent of Ethereum in terms of network activity and valuation. This is similar to how companies such as VeChain heavily draw upon Ethereum for their codebase but are completely separate projects. Ethereum is the most proven smart contract platform and has done many things right, so there is no need to reinvent the wheel for the core functionality of a system that utilizes many of the features it offers.

We agree that stablecoins on the Ethereum network are neither needed nor sustainable - DAI is an example of a stablecoin that uses Ethereum as collateral, and we believe that this dependency on collateral with value outside of the stablecoin system introduces significant stability risks that are eliminated by creating an isolated economic system, which is the approach that the Relay stablecoin system takes.

Thank you very much for clarification....
separate blockchain is much better thing,
and I just don't trust to much any of the etherium code base projects...
simply because of so many potential bugs.
And yes, Etherium is proven ...to Not work so good at all.
We need some better alternative that can survive a single game, or exchange gas overuse.

But I respect your idea to create better stable coin, this is a 'must have' thing,
and I will follow your project.

Suggestion: maybe create separate Relay Bounty Thread

[relaystablecoin]

It seems this point was poorly worded, so to be clear - the Relay Token / Dollar are not ETH tokens and their value is completely independent of Ethereum. The Relay stablecoin system's two tokens operate on their own blockchain that inherits much of Ethereum's technology but is completely independent of Ethereum in terms of network activity and valuation. This is similar to how companies such as VeChain heavily draw upon Ethereum for their codebase but are completely separate projects. Ethereum is the most proven smart contract platform and has done many things right, so there is no need to reinvent the wheel for the core functionality of a system that utilizes many of the features it offers.

We agree that stablecoins on the Ethereum network are neither needed nor sustainable - DAI is an example of a stablecoin that uses Ethereum as collateral, and we believe that this dependency on collateral with value outside of the stablecoin system introduces significant stability risks that are eliminated by creating an isolated economic system, which is the approach that the Relay stablecoin system takes.

Thank you very much for clarification....
separate blockchain is much better thing,
and I just don't trust to much any of the etherium code base projects...
simply because of so many potential bugs.
And yes, Etherium is proven ...to Not work so good at all.
We need some better alternative that can survive a single game, or exchange gas overuse.

But I respect your idea to create better stable coin, this is a 'must have' thing,
and I will follow your project.

Suggestion: maybe create separate Relay Bounty Thread

While we believe that Ethereum is a strong protocol that is well positioned to solve many of its current difficulties in ways that can be incorporated back into Relay, it's certainly too early in the blockchain space to know this with certainty, and differing perspectives such as yours are welcomed.

Thank you for the suggestion to make a separate bounty thread - we were not aware of this option and will do so shortly.

[relaystablecoin]

The bounty thread is now up at https://bitcointalk.org/index.php?topic=4966679.

[relaystablecoin]

80 million USDT were printed today with no transparency as to the drivers of this increase in supply - https://omniexplorer.info/address/1NTMakcgVwQpMdGxRQnFKyb3G1FAJysSfz. A truly trustworthy stablecoin should use decentralized and transparent collateral, as Relay does.

[relaystablecoin]

True fungibility through mandatory privacy is one of the defining features of the Relay Dollar. Look for an article later this week discussing exactly why privacy is a fundamental requirement of a successful cryptocurrency.

[relaystablecoin]

The start of the Relay stablecoin system public round will be delayed by two (2) weeks to allow additional time for publicity efforts. The new start date is September 15th.

[relaystablecoin]

Nearly everyone involved with crypto has, at some point, held a stablecoin such as Tether or DAI. Such a common use case needs a properly fungible, currency-like decentralized token. Relay fulfills that need.

[logictense]

With Tether, users have to trust that a centralized entity holds enough USD to back circulating Tethers. With Relay, a fully on-chain collateral mechanism means that users have full visibility into the decentralized backing of Relay Dollars, and they are able to redeem their XRD for collateral at any time.

I have been looking for an alternative to tether for months. It inconveniences me greatly that Im ought to trust bitfinex to keep up with the promise to provide the liquidity and maintain the attitude of nice guys with $2 billion collateral in bank accounts for backing issued tether. If u paranoidly reject the possibility of holding fiat on exchanges how can u trust tether and bitfinex paper house?

[relaystablecoin]

With Tether, users have to trust that a centralized entity holds enough USD to back circulating Tethers. With Relay, a fully on-chain collateral mechanism means that users have full visibility into the decentralized backing of Relay Dollars, and they are able to redeem their XRD for collateral at any time.

I have been looking for an alternative to tether for months. It inconveniences me greatly that Im ought to trust bitfinex to keep up with the promise to provide the liquidity and maintain the attitude of nice guys with $2 billion collateral in bank accounts for backing issued tether. If u paranoidly reject the possibility of holding fiat on exchanges how can u trust tether and bitfinex paper house?

This is a great articulation of the problems that led to the creation of the Relay stablecoin system. In fact, using the word 'paranoid' is unnecessary - it's simply a reasonable expectation that well over $2bn in circulating stablecoins should be proven to be solvent beyond any measure of doubt. Instead, cryptocurrency market liquidity is built on the shaky trust of the corporation running a single exchange, which goes against the entire principle of decentralization that drives blockchain technologies.

[relaystablecoin]

When it comes to cryptocurrencies, the tech is important but adoption is what defines success. The purpose of the Relay Foundation and its Ecosystem Fund are the long-term support of Relay adoption and development.

[relaystablecoin]

Nobody would opt in to a currency that publicly exposes balances and transaction histories, but that's exactly what most cryptocurrencies do. Our upcoming think piece discusses why privacy features are critical to avoid this problem.

[agindolf]

hello, you have not answered my question. i want to be sure, how much is relay market cap if relay dollar supply is changing?

[relaystablecoin]

hello, you have not answered my question. i want to be sure, how much is relay market cap if relay dollar supply is changing?

The circulating supply of Relay Dollars (which is always equal to the market cap) is variable based on demand for the XRD (additional XRD is issued if the price increases beyond the dollar peg) and the amount of Relay Tokens collateralized in the Relay DAO (this sets the amount of XRT that can be claimed with Relay Dollars).

While Relay Dollars are the stablecoin intended for use as a true currency, the underlying Relay Token is how network participants can directly benefit from the growth and adoption of the network. Relay Token holders receive any new Relay Dollars that are issued into circulation, and they also gain from increases in the value of the Relay Token itself driven by demand for the 'dividends' in the form of new Relay Dollar issuance.

The Relay Token does have a set total supply of 1bn XRT, of which 75% is available for purchase in the public round for up to 2000 ETH in total. At an assumed price of $275 per ETH, the initial market cap of the Relay Token is approximately $730,000.

[relaystablecoin]

Our discussion of why privacy is required in any cryptocurrency is now published at https://medium.com/@RelayFoundation/the-necessity-of-privacy-in-currency-cbd338a5acd0.

[relaystablecoin]

We have received inbound interest from a number of exchanges regarding listings, but want to share with the community that we will be selective when choosing exchange partners. Very new or poorly-run exchanges have a history of suffering thefts or user issues that can be greatly damaging to listed coins, such as Bitgrail's impact on Nano. Therefore, a general rule of thumb is that the Relay Dollar and Token will only list on exchanges that an active cryptocurrency trader will have heard of.

[relaystablecoin]

The need for reliable stablecoins is never more evident than in markets such as these. Imagine if Tether were found to be insolvent at this time - the crypto world needs a stablecoin like Relay with publicly auditable collateral.