Post
Topic
Board Announcements (Altcoins)
Re: Obyte: Totally new consensus algorithm + private untraceable payments
by
tarmo888
on 17/04/2021, 13:02:31 UTC
Why does Obyte use such strange term as "bounded" when describing their stablecoins? For me all their stablecoins fall into well established class  of algorithmic stablecoins the price of which is automatically controlled by algorithms. They use the  bivariate function in their algo to control the price but the essence of their stablecoins  doesn’t change - they are just algorithmic ones.  IMO, this  "bounded" in conjunction with stablecoin looks like "window-dressing" .

Algorithmic stablecoins are usually not backed by anything, Bonded stablecoins have reserve asset that backs them and is used to buy them. Mostly that reserve asset is GBYTE, but there can be any any token, even one of the stablecoins like OUSD.

The name Bonded comes from bounding curve. There aren't many stablecoins with bonding curves and there isn't any with bonding surface (multi-dimensional bonding curve).
https://coinmarketcap.com/alexandria/glossary/bonding-curve