OK so my philosophy on "algorithmic stablecoins"
1) sometimes their market cap goes up, which is cool I guess
2) the whole notion of a "stablecoin" that isn't backed by something you're confident will retain most of its value makes no sense
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Maybe the wrong implementation now, but right directionally IMO and interested to see more. Thought experiment: the Fed replaced by an algorithm is probably a net positive. Most things are not great decentralized, but this is one of the few things that are. Results seem far away.
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Hmm, but in a way the USD is also a stablecoin, loosely pegged to consumer prices.
Ergo, by that logic it shouldn't be impossible to do what the fed does but with a USD peg and decentralised?
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USD can peg to USD because it's USD
nothing else can hard peg to USD without using USD somewhere :P
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I agree you need the oracle/price info. But I don't think you need actual USD for a peg (that would mean DAI doesn't work conceptually)
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yeah agreed, though DAI in particular has some issues b/c the basket isn't stable