Содержание статьи:
- 1. Centralized/Fiat Collateral Model
- 2. Decentralized/crypto collateral
- 3. Decentralized/no collateral
- 4. Volatility-free EZO hybrid
1. Centralized/Fiat Collateral Model
- Most stablecoins utilizing this model generally retain their stable value on the market fairly well
- There is the added security of having the fiat backing the crypto stored in a bank account.
- These assets are less susceptible to factors behind volatility that impact other crypto assets
- Long-term, countries will issue their only fiat collateralized tokens making developer tokens lose intrinsic value on the market. Why buy from some company when you can buy directly from another a top-rated government?
- Developers who centralize their models have full control over your funds as the coins are not valuable on their own
- Developers and companies could easily lie about having a certain amount of money in the bank account to back the coin
- Stablecoins are still volatile, although significantly less than other currencies, and are still susceptible to speculation
- Developers control the price to try and reduce that volatility potentially categorizing them as securities
2. Decentralized/crypto collateral
- Decentralization, which fosters greater trustlessness
- Efficient nature due to utilizing multiple cryptocurrencies. Using a single cryptocurrency would heighten liquidity risk at times when stability needed to be achieved through selling
- Transparency
- Since these assets are over-collateralized, it helps to guard against volatility that often strikes across multiple assets
- Even though it is designed to help shield the user from some of the volatility, this model is still more volatile than models backed by fiat or commodities.
- If a cryptocurrency’s value falls below a certain threshold, it will be instantly liquidated, which is a severe issue if this should happen to more than one of the cryptocurrencies backing the stablecoin.
- Utilizing several different cryptocurrencies can often be a complex process for developers, which can result in issues for the user if the project is not carried out correctly.
- They all may classify as securities yet do not register as such. This regulatory oversight on behalf of the issuers shows a lack of seriousness about mass adoption.
3. Decentralized/no collateral
- The model is decentralized, making it possible to put more trust and confidence in the system
- Since the system relies on technology rather than assets, it can attempt to stabilize itself when prices change
- Unlike other models, there is no limit on the number of existing coins, allowing for demand to grow and prevent it from becoming so high that the price rises significantly
- The decentralized/no collateral stablecoin model may offer better safeguards than some other stablecoin models but there are still issues with the model that could be problematic for owners of the coin. Let’s take a look at a few of these disadvantages.
- This model is heavily reliant on the user base. If confidence is lost, there will be no price or coin to maintain
- The project must be able to continually grow, or the project will not be able to maintain the set price of the coin
- It can be harder to come up with clear calculations regarding performance as most potential situations are largely experimental or theoretical
4. Volatility-free EZO hybrid
- Consistently monitoring the performance of other currencies and tracking inflation via API’s, measuring the Liquidity Reserve against the U.S. dollar based on multiple leading exchanges that follow the median buy and sell rates listed on these exchanges. It will also maintain liquidity by evaluating the BTC and ETH micro-trades and pricing and through the use of the Personal Consumption Expenditures Index and the Consumer Price Index, providing the platform with a multi-market assessment that is extremely comprehensive.
- Maintaining a value locked price of $100 that eliminates the fear or panic that accompanies volatile cryptocurrencies and high demand. The value of EZO will increase with inflation
- Users who want to sell or redeem their stablecoins will be able to do so at any given time, without the fear or panic that comes with high supply.
- Rather than processing redemption orders on a first-come-first-serve basis, which can be unfair to users who simply are not quick enough to beat out other faster users or those attempting to cheat the system, orders will be filled on a pro-rata basis once every 24 hours.
- There is a circuit breaker mechanism that activates slow and halt trading mechanisms when coins such as BTC and ETH start to appreciate and trading increases. When this happens, it can indicate that there is more demand for regular cryptocurrencies and less demand for stablecoins, especially if there is a large jump in price and a desire to invest and profit from cryptocurrencies. This will give users the opportunity to trade in their stablecoins and will protect the system from too many requests at once.
- SmartSwap is still in TestNet
- The token is still in beta testing
- Element Zero will have to release EZObeta without inflation before EZO due to SEC compliance
- Volume is not present without a live trading token
- No Currency, Commodity or Collateral Needed
- Inflation Protection Against USD Volatility
- An open-source, turn-key platform
- Not-for-profit status