Secret Stablecoins

Possible to create a Secret Stablecoin (algorithmically pegged to usd) in the Secret Network system?

Pledge sAssets as collateral (lending) to create sStable which can be bridge back to Eth netwotk as USDT.

This can be part of the lending.

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If you can do it on ethereum, you can do it on secret network.
I think some interesting questions would be:

  • Can we utilize the properties of secret contracts to do this in a better way?
  • What kind of privacy properties can we guarantee to users?

If there are good answers to those questions, then it’s a project worth investing time in. If there aren’t though, one can just copy whatever design one likes to our network.

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Yes, those are questions we need to answer. Perhaps technical people (eg Enigma/Developer teams) can help to shed light on the value propositions?

Separately, minted sStables could also be used to finance, say Secret Invest Pools (another separate thread altogether).

For instance, in Balancer, there are InvestPools where users can deposit their usdt into and let their investment grow.

Or we could follow TokenSets (Eth network as well).

Essentially, minted sStables could be used to fund users’ investments, albeit with liquidation risks involved.

So everything can stay within the Secret Network Ecosystem - Users’ privacy is guaranteed.

That also means we need sufficient liquidity of the various assets (BTC, ETH, etc) deposited to Secret Network. This can be incentivized via higher Earn Rates (+locked periods).

The key is to do it in an extremely sustainable way without turning it into a ponzi scheme nor bank run.

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