Quote from: dababe on October 02, 2018, 09:10:58 AM

Quote from: Ewinsane on September 29, 2018, 01:32:14 PM

Quote from: Hosam Mazawi on September 28, 2018, 09:46:48 AM

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

A stablecoin is typically backed by a reserve asset that has the exact equal value of the coin/token. The backup reserve can be a fiat currency, a precious metal (e.g. gold), or a cryptocurrency. The issuer, whether it is a central entity, or under control of a DAO, should only issue an amount of stablecoins equal to the backup reserve they own. New coins can be issued only when the backup reserve grows.

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For real, if we are terming stable coins here, then that actually makes them pegged to something and in that case they are controlled, which rules out the fact of having some decentralized stable coin.

You have clearly stated a whole lot of examples of stable coins and the fact that what makes a stable coins what it is, is the fact that it is backed by a reserve asset which in this case is what the market is pegged to and coming up with some theory of having decentralized stable coin based on this thread, sound like something unrealistic to me. As long as it is stable, as far as I am concerned, it is centralized.

I agree. The stability of the coin is governed by some sort of external centralized entity. If your 'stable'coin is backed by gold, what happens when Gold crashes from $1400 to $300?

Exactly.