Let the sunshine in

[professor rat]

A clear trend is emerging for a floating globalized stablecoin increasingly backed by strong crypto currencies 

 . . .as opposed to far weaker ' shitcoins ' like fiat USD, Roubles, Yuen, etc. Junk bonds. Garbage.

Imitation is still a most sincere form of flattery derr.

https://decrypt.co/98401/tron-create-algorithmic-stablecoin-more-like-terra

Tron is already a fairly popular network for Tether. Tron-based USDT has a market cap of $41.7 billion compared to $39.8 on Ethereum, according to data from Coin Metrics. But it says it isn’t looking to make another centralized stablecoin. Instead, it wants to create a decentralized stablecoin that is backed not by cash, but by algorithms.

The obvious model here is Terra Network’s UST stablecoin, now the third-largest stablecoin by market cap, which buddies up with the network’s LUNA token to keep in check. UST’s peg is maintained via a burn mechanism—you have to destroy LUNA to mint UST, and vice versa—combined with arbitrage incentives, while LUNA’s price is allowed to roam.

Though Terra’s creators, Terraform Labs, project confidence that UST will hold its peg, it’s also deployed a backstopping strategy whereby the Luna Foundation Guard (LFG)—which exists solely to support the Terra network—has bought up over $1 billion worth of Bitcoin for reserves in case the peg slips. LFG says it plans to buy $100 million in Avalanche as it begins diversifying its reserves