What about an Incognito/PRV clone of Origin USD (OUSD)?

I was looking into the Origin USD (OUSD) and I thought it was a really interesting concept. It is a stable coin on the Origin network that is backed by other stablecoins (USDC, USDT and DAI, maybe others, but those were the ones I saw listed). When a user converts their stablecoins to OUSD, those stablecoins are then invested in DeFI protocols. The smart contract accumulates the earnings and automatically pays out to all OUSD holders to their wallets.

This provides a way for a user to hold a stablecoin, and earn interest, without having to lock it up, and it can be used to pay for services or send to other users… all while continuing to earn interest. I thought this might be a interesting concept for an Incognito based stablecoin (or maybe even a derivative coin) where the backed coins are used to provide liquidity in the pDEX…

Just a thought, not sure if anyone has seen this or has any thoughts around it… Here is the article for reference…

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Thank you, looks really interesting.

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Hey @doc, thank you for sharing it. Really cool that you kickstarted this discussion :partying_face: I also have some thoughts on how Incognito Stable coin might look like.

Digital Cash

Since day one of Incognito, we were inspired by the idea of creating a Digital Cash (CASH) - a private, stable, decentralized currency. The most feasible tech implementation of CASH is based on collateralization algorithms when to mint one stable coin you need to lock 120%-150% of the value of this coin.

Tech

A bottleneck of launching “CASH” was liquidations and during the past year we were focusing on solving this problem:

  1. Launching Incognito DEX is the first step
  2. Maintaining liquidity is the second one. As you can see pDEX liquidity pool has grown from $50K to $11M during the last 10 months
  3. Liquidity v.2 - is the final step

Once those problems are solved from a tech perspective nothing can stop us from launching “CASH”, when each coin will be backed by the value of PRV, BTC, XMR, ETH, or other chosen collaterals.

Economic

From the economic perspective we will need to solve a similar puzzle as for LIquidity v2. Fortunately, on the market, quite a lot of models, including Origin USD, MakerDAO’s, and others.

Interesting to know which model do you guys feel the most sustainable for the long run and why?

Growth

I see three options to kickstart “CASH”:

  1. Incognito core team switch focus and tries to bring “CASH” on the market
  2. We partner with existed stable coin operators like MakerDAO, Origin, or Reserve and launch a new stable coin together(Incognito support from a tech perspective and they focus on the adoption and growth)
  3. Find a builder or team of builders who are interested in creating and developing a unique stable coin

Looking forward to your thoughts and happy to discuss.

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The vision of a stablecoin backed by cross-chain assets sounds very attractive, but I am not sure if the market demand would justify a shift in development focus considering:

  • There are already transactable stablecoins on Incognito, and;

  • The considerable pre-development needed for a proper deployment of CASH (e.g. decentralised price oracle and governance model).

The development on pdapps and trustless bridges are way more important than CASH imo.

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That’s for sure. The Portal is the priority for now.

I dont think the core team should do any immediate shifting on focus, but if I was to chose between the 3 options you have listed… 2 would be my pick.

Incognito is meant to be a platform for all chains, and getting awareness out to other user bases is one of the best way to grow. I would say partnering with someone like Origin to bring a derivative of OUSD to incognito would give a much quicker growth opportunity. I really like the concept behind OUSD, and think would be great to see a stablecoin backed anonymous CASH coin.

I can also see how a partnership would be harder to develop due to the nature of a purely anonymous stablecoin, and the difficulties that will bring with listings… it would probably have to be completely DeFi with no CeFi counterparts… If 2 wasn’t possible, 1 would be my next choice, as having the core team do that development would bring a higher trust level than a 3rd party, at least for getting over initial launch and traction.

I also think some of the concepts/tech derived from the sort of project would open up other opportunities as well. The OUSDs ability to provide earnings by holding the coin, without lock up sounds like a fit with some features that might need to exist for the next iteration of Liquidity pool, which in turn might provide some opportunity to develop underlying tech to support such an effort as time/resources in the future allow.

I think there is value in doing this thought exercise to identify what might be some possible paths forward, if only to help identify key components that would be needed to bring those ideas to market… and thus provide opportunities to see where overlap might exist with current roadmap, and make sure to include those use cases in any technology currently on that roadmap.

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