I need idea validation for this stable coin idea of mine.

[prp-e]

I found this video explaining how to make a wrapped stable coin, but as you can see, the guy is not bothering to increase the font size. I guess I have to watch it multiple times )

[Findingnemo]

Just correct me if I am wrong here.

You want someone to give 1 USDT or any stable coin then you give 1 token of your stablecoin right?

But how exactly will your token gain value, it's like exchanging something that has real value to no value yet and you don't even have clear understanding about the concept yet, so better draft it clearly about your proposal and highlight how it is better than any other stablecoin.

[noorman0]

-snip-
That freezing risk is still there on a much bigger level of threat and it is something to consider.

That is where it ends; if you yourself cannot eliminate the risk of the original token issuer freezing assets, people have no reason to swap coins for yours. It merely adds trust-related risk exposure. Unless, of course, you have a protocol capable of rejecting transactions from entities flagged as high-risk.

[prp-e]

Just correct me if I am wrong here.

You want someone to give 1 USDT or any stable coin then you give 1 token of your stablecoin right?

But how exactly will your token gain value, it's like exchanging something that has real value to no value yet and you don't even have clear understanding about the concept yet, so better draft it clearly about your proposal and highlight how it is better than any other stablecoin.

As far as I was thinking of it, it could be something like Tether itself, you spend $1 worth of USDT and get $1 worth of my coin. But based on the whole discussion here, DAI (or USDS since both are the same eventually) had a better model of keeping the value the same.

-snip-
That freezing risk is still there on a much bigger level of threat and it is something to consider.

That is where it ends; if you yourself cannot eliminate the risk of the original token issuer freezing assets, people have no reason to swap coins for yours. It merely adds trust-related risk exposure. Unless, of course, you have a protocol capable of rejecting transactions from entities flagged as high-risk.

It's a great point. Honestly, never thought of it.

[TastyChillySauce00]

First, using a whitelabel service seems more elligible than other ways so I may be in search of one of those. And also about keeping the thing 1:1, I really am curious where did most stable coins started. Did they have millions in reserves?

Truly depends on the reserve, but most stablecoins of these days already have seed funding from day one so they can supply at the range of hundred thousand dollars to millions just to maintain the peg to get started, when the reserve grow from user deposit they may add more LP and scale accordingly. One of the benefit by getting funded by angel investor at the beginning is your project get instantly recognized by the public. Easy to scale and expand.

Technically speaking the pool don't keep the peg, just a liquidity to facilitate user to zap out or zap in, the one thing actually keeping peg 1:1 is reserve, mint/redeem mechanism or PSM just like DAI.

[prp-e]

First, using a whitelabel service seems more elligible than other ways so I may be in search of one of those. And also about keeping the thing 1:1, I really am curious where did most stable coins started. Did they have millions in reserves?

Truly depends on the reserve, but most stablecoins of these days already have seed funding from day one so they can supply at the range of hundred thousand dollars to millions just to maintain the peg to get started, when the reserve grow from user deposit they may add more LP and scale accordingly. One of the benefit by getting funded by angel investor at the beginning is your project get instantly recognized by the public. Easy to scale and expand.

Technically speaking the pool don't keep the peg, just a liquidity to facilitate user to zap out or zap in, the one thing actually keeping peg 1:1 is reserve, mint/redeem mechanism or PSM just like DAI.

Yes, I figured it out as well. For what I have in mind, DAI seems like the best practice. I just have to work on the idea a little and try to make it work on TRX.

[Muskanrani]

Just correct me if I am wrong here.

You want someone to give 1 USDT or any stable coin then you give 1 token of your stablecoin right?

But how exactly will your token gain value, it's like exchanging something that has real value to no value yet and you don't even have clear understanding about the concept yet, so better draft it clearly about your proposal and highlight how it is better than any other stablecoin.

This is really a critical point because without any liquid collateral reserve and automated redemption machanism its just a custodial risk .

 I think no user can replaces stable status USDT with zero-reputation token until it have a unique economic model like arbitrage incentive and lower gas fee without any unique economic architecture users face pure counterparty risk and i think no user will swap liquid USDT for an unproven illiquid tokens untill it have any clear economic incentive .

You raise a valid point about why user would swap USDT for a new token but do you have any other strategy in your mind that attracts the users towards your coin

Is there any direct incentive reward or lower transaction fee in this stablecoin model and any stronge reason to use this new token instead of those stablecoins???

[prp-e]

After a few days f non stop coding and testing on TRX test net, I close the case of this project for now. I may go for another crypto project which has less headache for me and not much legalities like a stable coin. Also, I'm open to any sugestion.