A multi-collateral backed stable coin built on top of the Compound money market code

Moresh Kokane
1 min readFeb 25, 2021

A money market like Compound has lenders on one side and borrowers on other side. It is a double sided market place. You need the lenders before the borrowers can be serviced.

A stable coin minter like Maker or Synthetix are about locking assets and creating a synth dollar and hoping that the market will accept it as an equivalent to existing stables.

However Compound can be repurposed as a multi collateral stable coin minter. Instead of having lenders on one side, you can simply mint a stable coin when anytime supplies collateral and triggers the borrow function.

This stable coin is effectively backed by the supplied collateral and using the admin module we can add any new collateral we want in almost real time. We can ensure the peg is met by adjusting interest rates. Monetization is already possible by sending the interest to the token holders claim wallet. Given that we have already forked the OPM adding the mint function is relatively straightforward.

This will allow us to jump straight to the Multicollateral model.

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