Another Stable Coin in need?
2018 has been the year of stable coins, this handful of stable coins have significantly raised funds and gave an impression that the stable coin problem is on the track of being solved. The impression is actually an illusion; the reason why all efforts were put to design another stable coin protocol is because we are convinced that the existing attempts are likely to fail. People observing the crypto ecosystem was aware of the need of stable coins. To create a winning stable coin by financial incentive was immense and the economic protocol of this design type is hard.
Stable coins are price stable cryptocurrencies, which means the market value of a stable coin is pegged to another asset which is stable, like the US dollar. The idea of a price stable crypto has been in air since long time. The cryptocurrency innovation and adoption has been bottle necked around the price stability. Building a stable coin was considered the holy grail of the crypto ecosystem. How to design a stable coin?
The stable coin implies a peg. All the stable coins generally peg to the US dollar, at times they peg to other major currencies or to consumer price index. The stable coin claims itself an asset that prices itself rather than an asset that is priced by a supply and demand policy. Stable coins may sound to be impossible, but they are just currency pegs and currency pegs are definitely not impossible.
In reality any peg can be maintained but only under a certain band of market behavior. These bands might be wider than other for different pegs. In few market conditions it is possible to maintain a peg. The stable coins are first introductions to fight against cryptos, but if the first experience itself is a massive exploitation and violation of trust. The creation of this economic hardship could be a setback. Instead of a leap forward the open currency movement it can be a take hold. It is crucial to enter this new era without a caution.
At present along with crypto, the stable coin which is a new era is eager to introduce women role models, who can impact the direction of where the cryptos and the blockchains are being headed and also to inspire other women to do the same or be an inclusion to make a stand in the world of crypto.