"The mechanics of the Dai Alpha are similar to NuBits, the second oldest stablecoin. "
The DA is the name we give the Dai economy when it is first launched a couple of weeks from now. As the name suggests, it’s an early and less secure version of the full system, that goes live with the goal of allowing public testing and integration by the community, as well as being useful for some economic activity (such as decentralized ETH daytrading).
The mechanics of the Dai Alpha are similar to NuBits, the second oldest stablecoin. The most important part of the system are the custodians, similar to NuBits these are centralized, trusted entities that are entrusted by the community to receive newly printed (“fresh”) Dai to sell off for cryptocurrency such as ether or bitcoin, which is then converted to fiat reserves and held to allow the custodians to maintain the 1 SDR peg in the future. Functionally, the peg will be maintained using a single “pegger contract” on Ethereum that buys and sells Dai in large volumes, at a high spread. The high spread is necessary for guaranteeing the economic viability of maintaining the Dai Alpha peg, which is important to ensure its stability.
"NuBits has successfully proven that it is possible to create a stable crypto-currency. Imagine that the design of Ethereum had been based on a stable coin (tracking say the dollar / euro) which would be used to pay for transactions and a separate share token that is used to stake out consensus."
Source: https://www.reddit.com/r/ethereum/comments/3m3kul/wild_idea/
Oh, btw, nuBits is doing exactly what you proposed. It takes the FED way and uses liquidity bots to enforce the peg.
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BitShares-based BitUSD is probably the best known one, and it’s definitely not dead and works as advertised.
NuBits is another one and it works as advertised too.
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BitShares and NuBits are just two of the failed experiments I was talking about. BitShares are worth nothing. NuBits’ parking interest failed, so they adapted the system: now they mint NuShares and use them to buy up NuBits. As a result of the hyperinflation this caused they are now in the process of re-denominating NuShares such that 1 new NuShare = 10,000 old NuShares.
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Not theoretical, check out /r/nubits. Currently it tracks a USD, but there’s nothing stopping it from tracking, say a basket of goods.
NuBits has seemingly modeled the US Fed’s open market operations, despite the fact that
decentralization is incompatible with the highly-coordinated-and-credible activities of the FOMC (which enjoys almost-perfect investor-confidence as a result of being “the unique
leader”). Moreover, they seem to have chosen the disastrous Prompt 1 of “competing feed providers”.
The piece is generally thought provoking. (although written in Jan 2015)
its a darknet exchange that can only be accessed through i2p. How to use exchanged.i2p
however there are 3rd party inproxies you can use to access it. at ExchangeD.i2p.xyz the api works fine over inproxies.
No mention of NuBits, although the talk deals with pegging with the USD on the blockchain –
Streamed live on May 21, 2015
Have you heard of BitUSD?
It is a CryptoAsset that attempts to peg itself to the US dollar in a decentralized fashion. There is no counterparty risk and there are no IOU’s. It is backed by 300% collateral on the world’s first decentralized exchange - and also pays interest… this means is you can hold value in crypto.
BitUSD - along with Tether - together, are now being traded on Shapeshift.io (Erik Voorhee’s no account, no password crypto exchange).
Is this too good to be true? Will this be the killer app for bringing Bitcoin to the masses? How long has it been working? Has there been any hiccups? Is this the future of fiat?
This is why we need an efficient decentralized crypto exchange. Will this ever happen?
BitcoinXio 3 points 10 days ago
It won’t happen as long as govt regulated fiat money is involved. For pure crypto to crypto exchanges, sure it’s already happening. But with people wanting to buy btc with fiat it can’t happen due to regulations/banks.
JustAnotherBitcoiner 5 points 10 days ago
You could use an altcoin like NuBits that is changing the supply after supply and demand to stay within the price of a us dollar. Since a NuBits is always is worth 1$ this would function like a token or store of value when prices are going down. Whenever you want to cash out to you bank account you could use a gateway service and pay a small fee and have your money in a bank account. This is better than having fiat involved directly with the exchange. Since a centralized bank would not make a decentralized exchange decentralized. Plus I want my bank to have as little to do with my bitcoins as possible.
Wow, an actual article dedicated to NuBits! Haven’t seen one of those in a long time. Great to see people are taking notice! I’m not sure if I agree with this part though…
Is the Nu protocol the answer to all our monetary economic prayers? Absolutely not. First, it would not seem to meet the robustness standards of a “real monetary rule,” as outlined by George Selgin. Unlike the automatic (if crude) supply protocol of bitcoin and most other cryptocurrencies, the NuBits supply protocol depends on voting NuShareholders. Second, it can — by definition — be no more stable than the dollar. Widespread adoption of NuBits would provide no refuge from the Fed’s monetary mismanagement.
We will soon have Euro and Yuan NuBits as well, not to mention SDR NuBits, which could possibly act as a refuge from irresponsible central banks. It might even be possible in the far future for Nu to release a currency which isn’t dependent on any central bank, one which acts as its own currency without needing to simulate or track the value of something else already in existence.
Yes. I know @tomjoad isn’t the marketing manager anymore, but he’s still part of the community, so I was wondering what he thought about it.
I’ve approached him on twitter and he asked for some details. I’m going to send him some more resources about Nu (history page, information about liquidity pools, ALP) and see if we can get him to join us on the forum for a discussion.
Twitter conversation between David Beckworth (economist), David Andolfatto (Fed VP), William J. Luther (economist) and Steve Randy Waldman (programmer/economist) on this last CATO nubits article:
William Luther’s blog post has now been cross posted to the Cato Institute website. I think this is the biggest institution outside of the cryptosphere to report on NuBits.