New Stablecoin Issuer Raft Is Eschewing Fiat for Its Financial Backing
Its R stablecoin is collateralized by one crypto asset: liquid staking leader Lido’s staked ether (stETH).
Raft and documentation.
The stablecoin, which began trading Monday, uses both hard- and soft-peg mechanisms to keep its price around $1, according to the protocol’s documents. The hard peg depends on arbitrage to maintain a stable price, while the soft peg relies on incentivizing users to act based on “the expectation that the peg will be kept in the future.”
Anything that works on incentives has to be very aware of counter-incentives that may be more profitable. We have seen so many tokens trashed using flash-loans and manipulated swap-pools. Every dev seems to live in a fantasy world where every user is playing the game as designed, ignoring all the possibilities of what an expanded game looks like.
[...] Raft’s Head of Marketing Tony T., in an exclusive interview with CoinDesk. He declined to give his last name.
Well thats confidence-building.
mmm... crypto words starting with the letter R...