Incentivized Third Party Collateralization for Stablecoins
Fuente:
arXiv
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| Hauptverfasser: | , |
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| Format: | Preprint |
| Veröffentlicht: |
2023
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| _version_ | 1866916374782148608 |
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| author | Das, Souradeep Venkataraman, Revathi |
| author_facet | Das, Souradeep Venkataraman, Revathi |
| contents | Stablecoins, which are primarily intended to function as a global reserve of value are insubstantial in their design and present many failure points. The primary mechanism to enable these coins to hold on to a fixed value is by backing them with collateral. Fiat collateralized stablecoins require users to trust a centralized entity, which breaks the total concept of decentralization. Crypto collateralized stablecoins have issues involving high collateral requirements and introduces risks of auto-liquidation. In this paper we aim to propose an alternative architecture for the creation of a functional and secure stablecoin. |
| format | Preprint |
| id |
arxiv_https___arxiv_org_abs_2309_11521 |
| institution | arXiv |
| publishDate | 2023 |
| record_format | arxiv |
| spellingShingle | Incentivized Third Party Collateralization for Stablecoins Das, Souradeep Venkataraman, Revathi Computer Science and Game Theory Cryptography and Security Stablecoins, which are primarily intended to function as a global reserve of value are insubstantial in their design and present many failure points. The primary mechanism to enable these coins to hold on to a fixed value is by backing them with collateral. Fiat collateralized stablecoins require users to trust a centralized entity, which breaks the total concept of decentralization. Crypto collateralized stablecoins have issues involving high collateral requirements and introduces risks of auto-liquidation. In this paper we aim to propose an alternative architecture for the creation of a functional and secure stablecoin. |
| title | Incentivized Third Party Collateralization for Stablecoins |
| topic | Computer Science and Game Theory Cryptography and Security |
| url | https://arxiv.org/abs/2309.11521 |