Community Stablecoin - Idea

[Gormicsta]

Instead of regular centralize stablecoins, why we don't have a stablecoin with its own blockchain or a token where anyone can mint or redeem that stablecoin using ONLY Cryptocurrencies at the market price.

For example if I have 1 Eth and want to mint it into Xusd (community stablecoin) it goes like this example:

If Eth market price = $1000 I send 1 Eth to this blockchain or contract and I receive 1000 Xusd.
And it can be redeem for any Crypto at market price,
If Eth price = $2000 I send 1000 Xusd and get 0.5 Eth.

What you are proposing seems to me very similar to what has already been implemented. These are wrapped tokens that are tied to the cryptocurrency for which they were issued. For bitcoin there is Wrapped BTC (WBTC), for ETH there is Wrapped ETH (WETH). They have pretty much the same price as BTC and ETH and follow their price all the time. And they can be exchanged for any other cryptocurrency. I may be wrong.

You do make a valid point, although wrapped tokens are more like a way to use a particular cryptocurrency on other Blockchains, but they pretty much don't allow you to use smart contracts or other decentralized applications.

[tvplus006]

...We are now being invaded by centralized sh8t. So there you have it, if there are centralized coins or centralized stable coins, then there must also be decentralized stable coins, and these are the ones that people should support, not those centralized ones because this is where we can experience a true freedom, just like what we attained when we use Bitcoin...

Nevertheless, traders continue to use centralized stablecoins, while ignoring decentralized ones, despite many different negative news. And if we compare the capitalization of the most popular decentralized stablecoin DAI with the centralized USDT, we will see that DAI is used 18 times less than USDT.

[Elpeor00]

Besides the already mentioned fact about decentralized stablecoins being a thing your idea has an issue

If you back the stable coin with assets whose prices are floating respect to the thing you stablecoin is pegged to, you are left with two options:

Either you simply hold the backing assets or you trade them against the currency your coin is pegged to and among themselves in order to minimize the effects of volatility

In both cases you will end with either profits or loses, and it will make your coin less an stablecoin and more a security. I actually think about DAI as a very well managed security with no immediately apparent way for the investors to take profits or loss, still like it more than other 1:1 cryptos, btw

[oktana]

I’m not sure I totally understand your suggestion/opinion, but I’m just wondering if the centralization of the current stablecoins is worth all of this? What you’re saying can actually be achieved with the current stablecoins we have (swapping from one crypto to another, e.g Eth to USDT). And in your suggestion you said “1 Eth”, have you forgotten that 1 Eth of yesterday isn’t the same as today’s, neither is today’s the same as tomorrow’s? Before such a token is created, a lot of thinking happens, without which you’ll build a shit coin. You should have basically just said; a stablecoin that is entirely decentralized.