A censorship resistant fiat pegged stable coin

  1. Fiat-pegged or asset-backed coins
  2. Algorithmic coins.
  1. Many seem to behave like securities. Havven, in particular, uses virtual collateral and also issues its holders with transaction fees. Common enterprise in pursuit of profit. Havven would be above-board if it didn’t distribute transaction fees.
  2. But the bigger problem is that algorithmic stable coins do a poor job of maintaining price stability. Look at any of the projects and their records speak for themselves. Clever algorithms cannot replace the need for a peg to fiat.

The same principles can be applied in the crypto world.

We start by taking the premise used by Havven to issue its stable coin — that is, using virtual rather than physical collateral. The reasons for this are sound. To establish a link between a physical asset and a crypto coin is quite hard. But the public does not trust virtual collateral, and this explains the price instability.

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