Discussion on ethereum-based stablecoin on Reddit

[Sebsebzen]

FYI, found this on Reddit

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Introducing eDollar, the ultimate stablecoin built on Ethereum

As someone who’s been obsessed with pegged cryptocurrencies for the past 6 months, I was delighted to find out that even with just my meager programming skills, developing for Ethereum is so incredibly easy that I’ve been able to come up with what I believe is close to being the perfect design for a stable cryptocurrency.

In short, the eDollar is a token pegged to the USD that is issued in a manner similar to bitUSD, and that has a DAO (called Maker) backing it and providing liquidity similar to the system of liquidity providing custodians that NuBits uses.

The purpose of eDollar is to give average people a currency they can use on the ethereum network to interact with dapps, without having to worry about insane volatility like with bitcoin and other 1st gen cryptocurrencies. It also gives ethereum investors the possibility to take leveraged ETH positions (albeit with very high collateral requirements).

Join the debate at: http://www.reddit.com/r/ethereum/comments/30f98i/introducing_edollar_the_ultimate_stablecoin_built/

[mhps]

It’s a re-make of collateralized bitUSD. The complexity does not inspire confidence and hinders adoption. The introduction post has been the only one in the dedicated forum since starting more than 10 days ago.

Discussions in the reddit thread are very good, especially about credit dealers being needed for large transactions. It appears that the class of stable coins such as bitUsd and eDollar using hedging will also face the need of intermediaries just as Nu does.

It’s good to see the fiercest criticiser of Nu from bitshares trying to make his own stable coin and, when having to face the reality of actual hedging and motivating market-makers/credit-dealers, hopefully coming to understand it’s rather easier to talk than to work.

[cryptog]

You have this related post: More participants in the stable cryptocurrency race. Nu needs more awareness

[Sentinelrv]

Let’s not give them any ideas.

[Sebsebzen]

Recent update with detailed work plan: http://forum.makerdao.com/t/how-the-edollar-peg-works/64

Any thoughts? How does this differ from NuBits model?

[cryptog]

It seems that edollar is closer to bitsusd than to nubits.
It seems it relies on collateralization whereas nubits is counter-party risk free.
It seems it introduces a notion of debt, negative balance, some kind of IOU a la ripple, to keep track of what is owed and owned.
It uses interest rates a la nubits.
And there is no custodians it seems. Everything has to be automatic, specified by smart contracts.