1. Incentivized Third Party Collateralization for Stablecoins
- Author
-
Das, Souradeep and Venkataraman, Revathi
- Subjects
Computer Science - Computer Science and Game Theory ,Computer Science - Cryptography and Security - Abstract
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.
- Published
- 2023