"TrustUSD"
(sic) appears to be a complete rip off of the late and unlamented Base/Basis nonsense
stablecoin scheme, shorn of details of how the removal of the "bond" support* proposed there would be replaced, presumably by a
unicorn smart contract.
*think how security offering attitudes have changed in the 2 1/2 years since.
That pile of unnecessarily complex garbage thinking,
"bullshit baffles brains" was shilled by
John Taylor of Taylor Rule fame, and a nearly Head of the Fed if Trump had had his way.
I note that the Dangermouse character behind this Trust
(lol) thing likes to pose on Twitter in his MAGA hat.
Just a couple of examples of completely coincidental
similarities which abound between the $132,000,000 failure
2017/18 "Basis" scheme and the destined to fail
2020 "TrustUSD" copycat scheme.For example, to start off, 1 TrustUSD token is established to target $1 USD. TrustUSD could potentially
even eclipse the dollar and be updated to peg to a consumer price index (CPI), similar to how central
banks hit inflation targets today. The TrustUSD protocol accomplishes this by algorithmically adjusting
the supply of TrustUSD tokens in response to changes in, for example, the TrustUSD exchange
rate. This implements a monetary policy similar to that is also executed by central banks around the
world, except we operate as a decentralized, protocol-enforced algorithm, without the need for direct
human judgment as opposed to traditional banking algorithms.
For example, to start off, 1 Basis can be pegged to always trade for 1 USD. In the future,
Basis could potentially even eclipse the dollar and be updated to peg to a consumer
price index (CPI) or basket of goods, similar to how central banks hit inflation targets
today. The Basis protocol accomplishes this by algorithmically adjusting the supply
of Basis tokens in response to changes in, for example, the Basis-USD exchange rate.
This implements a monetary policy similar to that executed by central banks around
the world, except it operates as a decentralized, protocol-enforced algorithm, without
the need for direct human judgment..
Measuring Exchange Rates with Oracle Systems
Since the price of TrustUSD in the markets is exogenous to the blockchain, the system must rely on a
decentralized or centralized price oracle to estimate the true exchange rate. There are multiple ways
oracle systems can be implemented into TrustUSD:
• Trusted Feed. This method is the simplest method that allows a source to upload real world
exchange rates from large trustworthy exchanges to a smart contract.
• Decentralized Delegation Feed. This method isn't 100% decentralized, but it allows holders
of TrustUSD tokens to vote on a select number of price-feed uploaders. This method also can
prevent price manipulation by allowing token holders to vote out users with bad intentions.
Measuring the Exchange Rate
First, we explain how the Basis blockchain obtains the Basis-USD exchange rate. Since
this information is external to the blockchain, the Basis protocol must implement
what is known as an oracle system, i.e., a system that uploads outside information to
a blockchain. This can be implemented in several ways:
• Trusted feed. The simplest approach is to have a single feed that uploads
the real-world exchange rate to the blockchain, say from Coinbase, Kraken, or
another large exchange. This is obviously a point of centralization, but it bears
mentioning nonetheless.
• Delegated decentralized feed. A semi-decentralized approach is to select a
small group of feed uploaders by vote from holders of Basis... If any bad actor is consistently identified as trying to corrupt the
feed, they can be voted out of the system by coin-holders ..
Ad nauseum..
