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One of the things I'd love to see built in the @solana DeFi hackathon is the Basis Trade Stablecoin https://docs.google.com/document/d/1hoOlS-tgLgr-vcaKd9toZwg6_YLC96-j/edit
Stablecoins in the space today have a variety of aspects that people take issue with:
- occassional instability
- overcollateralization
- central issuer
- auditability
The Basis Trade Stablecoin solves these
- occassional instability
- overcollateralization
- central issuer
- auditability
The Basis Trade Stablecoin solves these
Basic Idea:
- take BTC and post it as collateral
- go 1x short the BTC-USD perpetual swap contract
- The long BTC spot, from your collateral, is perfectly hedged by the 1x BTC-USD short
- Therefore the value of your token backed by this futures position is always $1.
- take BTC and post it as collateral
- go 1x short the BTC-USD perpetual swap contract
- The long BTC spot, from your collateral, is perfectly hedged by the 1x BTC-USD short
- Therefore the value of your token backed by this futures position is always $1.
This is something that could potentially be the next flagship stablecoin project in the industry.
If you're interested in working on it, apply to for the hackathon at http://solana.com/defi and shoot me a DM so we can chat!
If you're interested in working on it, apply to for the hackathon at http://solana.com/defi and shoot me a DM so we can chat!
