Creation of a stable coin

[Kinkyads]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

[1714071026]

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[1714071026]

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[shinratensei_]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

You must have owned reserve funds that will be used to back your stable coin. If you are wanna using formula and it will not work. You create a token from the smartcontract based on how much amount in your reserve funds. As long as you have made your total supply of token will be the same as your reserved funds to backed the coin and that means your coin will be a stable coin.
It does not about to create a new coin and then you are doing nothing after that. People will be interested to use your stable coin if your coin was backed by real asset or stable currency like fiat.
if you can't bring reserve funds to backed your asset and that will be useless and your coin will be another garbage asset with zero value.

The key is about the transparency of your reserved funds to backed your coin.

[Yaunfitda]

In addition to what @shinratensei_ have said, stable coins are supposedly back by USD for example tether. So can't just run on fractional reserves here, it should be back as 1:1 obviously, otherwise you may run on legal ramifications just like Tether are right now.

There should be someone to work as custodian to hold your fiat so that authorities can do audits in the future (this is the main issue with Tether.)

So it's not that easy to run or create a stable coin in the market, it takes huge amount of capital and then the whole nine yards of compliant to regulations.

[ecnalubma]

A stablecoin can be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).

source

Basically above are the required that can backed stablecoins. It should also undergo government regulations, In the near it might be consider as securities as well.

[Herbert2020]

it depends on what type of it you want to create.
there is stand alone blockchain stable coin, in which case you simply create a cryptocurrency like you do any other time.
there is OMNI layer stable coins that use bitcoin blockchain and as its OMNI layer. in which case you have to read how OMNI layer works https://en.bitcoinwiki.org/wiki/Omni_Layer
there are tokens on smart contract platforms. this is the case you yourself said, you careat crappy token on one of these crappy platforms.

all of these methods have a step one which is starting a company and proving actual funds backing the stable coin.

[Bonwin]

In addition to opinions from others, exchanges must be involved, most especially the big ones in the market.
If there are no exchanges to list and trade your stable coins, then, it is a pure shit coin and no one will ever recognise you have a coin, let alone a stable coin.
Lots of the projects claiming they created stable coins, if you study carefully well, are not listed on reputable exchange(s).

[DaMut]

In addition to opinions from others, exchanges must be involved, most especially the big ones in the market.
If there are no exchanges to list and trade your stable coins, then, it is a pure shit coin and no one will ever recognise you have a coin, let alone a stable coin.
Lots of the projects claiming they created stable coins, if you study carefully well, are not listed on reputable exchange(s).

This is not necessary for stablecoin to have, a real stablecoin must have a value and the value comes from treasury or reserve.
Ideally, a stablecoin should have pegged every coin in circulation with assets, to maintain the price or the value of the coin.
And the exchange is an external factor for stablecoin in gaining popularity and utility of coin.

[Beparanf]

In addition to opinions from others, exchanges must be involved, most especially the big ones in the market.
If there are no exchanges to list and trade your stable coins, then, it is a pure shit coin and no one will ever recognise you have a coin, let alone a stable coin.
Lots of the projects claiming they created stable coins, if you study carefully well, are not listed on reputable exchange(s).

This is not necessary for stablecoin to have, a real stablecoin must have a value and the value comes from treasury or reserve.
Ideally, a stablecoin should have pegged every coin in circulation with assets, to maintain the price or the value of the coin.
And the exchange is an external factor for stablecoin in gaining popularity and utility of coin.

As long as their is an asset or commodities that will be backed by, it can be consider as stablecoins like how China plans to create their own coin since it will only disbursed based on market condition that will still safeguard their peoples investment. Actually I don't really acquire stable coins since it seems no use for me in trading it or I'll plan to hold long, I will go to coins that can grow in value as time passes by and stablecoins is not applicable on it.

[CjMapope]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

If you don't know already, dont make one
a Stablecoin is basically what we use IRL, FIAT is a stablecoin, its backed by the govs word that its worth what it says on the colored paper
But imagine if people wanted proof, or the actual gold equivalent, stablecoins are not to be made willy nilly. in crypto they become insolvent quickly if done wrong.
You need huge reserve funds of whatever you back it with, and tight planning on how it will be rationed to always stay solvent

[supercanada1]

In addition to opinions from others, exchanges must be involved, most especially the big ones in the market.
If there are no exchanges to list and trade your stable coins, then, it is a pure shit coin and no one will ever recognise you have a coin, let alone a stable coin.
Lots of the projects claiming they created stable coins, if you study carefully well, are not listed on reputable exchange(s).

This is not necessary for stablecoin to have, a real stablecoin must have a value and the value comes from treasury or reserve.
Ideally, a stablecoin should have pegged every coin in circulation with assets, to maintain the price or the value of the coin.
And the exchange is an external factor for stablecoin in gaining popularity and utility of coin.

As long as their is an asset or commodities that will be backed by, it can be consider as stablecoins like how China plans to create their own coin since it will only disbursed based on market condition that will still safeguard their peoples investment. Actually I don't really acquire stable coins since it seems no use for me in trading it or I'll plan to hold long, I will go to coins that can grow in value as time passes by and stablecoins is not applicable on it.

That is really wise of you. This concept of stablecoins at present makes no sense to me. We have fiat and paper money that is already playing role of stability. We expect rather want digital coins to be volatile ones. So that investing in them will make us rich after some time. Volatility is one of the reasons why bitcoin is cherished by us. Moreover, stablecoins will also take away control form us.

[batang_bitcoin]

Why create another stable coin if you don't even have an idea on how to make one? this is one problem on the crypto community when some people found out that they can potentially make profit out of it, they will come out to an idea of creating a coin but now this is an odd idea although applicable to the others that I've seen before because it's with stable coin. As being explained, it's not just about the creation but you must really have an existing fund for it.

[Febo]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

You issue fresh tokens when someone deposit fiat. When they withdraw fiat you burn tokens. Is simple. You just need to create token that you can keep issue. Mostly people crate  tokens with limited supply.

[disconnectme]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

You know we have different types of Stable coin design. I think you should be more specific about asset you have intention, is it Crypto Asset like Dai or Gold like PAX and other similar project or Real assets. Another thing you should looked at, is the regulations, especially if you are thinking of USD backed Stablecoin

[tenakha]

Can anyone direct me or tell me the steps one would go to create a asset backed stable coin?  We know about crypto very well but when it comes to the creation of a stable coin, we are a bit lost.  

Do you create the tokens then send it to a smart contract?   How does that part work?


Any help would be greatly apprenticed

I hope you will find everything about stablecoins in this article: https://medium.com/@AndroidAdvance/create-your-stable-coins-in-99-easy-steps-b4c43dc2cff7