Dai (by @MakerDAO) and Basis (by @basisprotocol) are both called stable coins. However, the underlying algorithms are drastically different. After a deep dive, I think:
Dai will do well.
Basis will fail catastrophically.
Here's how Basis works:
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1/Ultimately the stable coin graal will not come from a specific algorithm. The basic problem with “money” is that it serve inherently irreconcilable purpose (store of value and unit of account). The best way to overcome this still is to disconnect those functions in different
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If you can theoretically build an algorithm for a stablecoin which tracks the CPI perfectly, then it can function as both a Store of Value and Unit of Account.
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Yes.
2:45 AM - 28 May 2018
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