For the sake of discussion, what if we removed DAI and disallowed soft-pegged stablecoins in the future? What if we only allowed coins that have a history of maintaining their peg? I feel like the protocol would work much better this way. I’m envisioning exchanges offering trading pairs against USD but it’s really MUSD. When a user goes to withdraw they select from our basket of stables and the exchange executes the smart contract to give the user the stable they want.
Also for deposits, they could deposit any stablecoin they want.
As long as we don’t implement a AMM, this would totally be possible…it’s key that we use coins that maintain the peg well. If the AMM is implemented, I don’t know how we are any different. It’s brilliant and simple that all coins in our basket are 1:1
OK, this is a thought experiment.
FRB will announce a cryptocurrency dollar issue, with ERC20 tokens, with implementation set for a year later.
Hard peg tokens such as USDC, which are currently the most credentialed, will die. They will no longer need to exist.
Soft peg tokens such as DAI and others will probably survive. This is because the FRB will not do it.
It may be able to borrow USD against cryptocurrencies, but that would mean that the cryptocurrency would give up its right to issue currency.
The goal of the mUSD. It is to surpass the real USD in utility, even if it doesn’t win in credentials, when the US issues the real USD.
I think soft peg tokens are necessary for that. Integrating them and diversifying the risk by consolidating them and decentralizing them sufficiently will allow for both utility and confidence.