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One thing that continually shocks me: the number of stablecoin projects that don't understand the use cases of stablecoins. No one wants your coin algorithmically pegged to a hyperinflating currency: it's not stable, and you can't use it as an FX onramp.

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What’s the use case, as you see it?

SBF

@SBF_FTX

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@TheBTCGame

Forming the backbone of crypto markets, allowing users to easily transfer a stable currency between venues and efficiently go between fiat and crypto in a portal without requiring each exchange to separately implement fiat banking.

3:44 AM · Apr 12, 2020Twitter Web App

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So that’s seems like the use case that made sense to me. But I’ve heard the narrative that people outside the U.S. who (still) want USD are maybe willing to settle for USD tokens.

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Yeah some will settle for them--it fills one use case (stable thing to sell into) but not the other (FX onramp). Still most will prefer backed ones because the FX holdings help maintain the peg.

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I think you need to take a look at

@HavenXHV

they are doing exactly this using chainlink oracles. #XHV

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Stability is relative. Relative to one dollar, one dollar is one dollar. By the way you’re approaching this nothing is truly stable. Meaning no one thing is sufficiently stable relative to any other separate thing.