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Is it possible to have a "stable-coin" version of Bitcoin?
100 sats \ 6 comments \ @028559d218 18h builders
A stable-coin version of Bitcoin... which has all the censorship-resistance, proof-of-work, decentralization and security... but also tied to the value of the US dollar?
In which case the spending of this 'stable-coin' wouldn't require the tracking of capital-gains taxes? Because its value doesn't change?
Security Decentralization Proof-of-Work (Energy as a foundation) That can't be 'turned off' etc But that's also digital.
Does something like that exist?
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0 sats \ 0 replies \ @DarthCoin 8h
This is the most idiotic thing ever I read on SN...
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0 sats \ 4 replies \ @k00b 18h
but also tied to the value of the US dollar
I believe this is where it gets tricky because it requires issuance and curtailing which implies a centralized entity which implies permission.
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0 sats \ 3 replies \ @028559d218 OP 18h
Couldn't it still be permission-less? There's nothing about capital-gains taxes that has to be centralized. It's only if the non-currency 'goes up' right?
Is there like a Lightning Stable-Coin or something?
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0 sats \ 2 replies \ @k00b 18h
Stablecoins require an issuer to maintain parity and the issuer would be responsible for making sure the stablecoins are permissioned - freezable/not redeemable for dollars at will. Stability requires regular issuance and curtailment.
If you want to learn about algorithmic stablecoins, which don't require an active issuer, Do Kwon might be able to answer your questions from prison.
There are Stable Sats, which require a counterparty that has a permission relationship with an exchange iirc. That might be the closest thing to what you're asking for. Everything else proposed to deploy on lightning (rgb/taproot assets) has an issuer.
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0 sats \ 1 reply \ @028559d218 OP 17h
and the issuer would be responsible for making sure the stablecoins are permissioned - freezable/not redeemable for dollars at will.
Why... couldn't they be redeemable for dollars at will?
"Risks to consider for Stablesats include the following:
  • Counterparty risk with the exchange. If the exchange goes under, the collateral may be unrecoverable.
  • Derivatives exchanges have auto-deleveraging for perpetual contracts. The position could be closed despite being in profit. This will lead to an under-hedging situation.
  • Funding goes negative for an extended period of time. Historically there has been on average more longs than shorts on derivatives exchanges. In this environment, funding is revenue-generating for short positions. This might not stay true in the future.
  • To learn more from Galoy view the GitHub repo, or read other relevant resources: Luna Bros, Inc. (Bitcoin-Backed Stablecoins section) and thoughts from Kollider."
It sounds like stablesats have to have an exchange as a counterparty... but Bitcoin is based on having no counterparty which is obviously better.
I think what I'm interested in is DLCs or 'discreet log contracts'? Where you can still use the Bitcoin network or Lightning network regularly... but there is no capital gains 'gain'.
Like I said it would still need to be proof of work, decentralized, and impossible to 'turn off' (my understanding is that Tether can be turned off at will?) but not deviate from the value of the fiat it mimics.
That way people could use it no-kyc and with no permission but not have to worry about complex taxes just to send and receive zaps.
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69 sats \ 0 replies \ @k00b 17h
Why... couldn't they be redeemable for dollars at will?
US Gov: North Korea hackers have the stablecoins at address _________ Issuer: oh hey thx for letting us know. anywayz we will convert them to dollars for anyone that asks US Gov: K, welcome to jail, bytch, and give me all your money, ho Issuer: wait but they moved them around from that address, how am i supposed to know US Gov: welcome to jail, bytch, and give me all your money, ho Issuer: wait, we'll prevent redeemability from anything related to that address, broadcasting that information to anyone who might be a potential offramp causing a cascade to any swap system upstream of an offramp, and no one will do business with them US Gov: k that's better
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