Incentivized Third Party Collateralization for Stable coins
Abstract
Stable coins which are primarily intended to function as a global reserve of value is insubstantial in their design and present many failure points. The mechanism to enable the coins to hold on-to a fixed value is by backing it with a collateral. Fiat collateralized stable coins requires the users to trust a centralized entity, which breaks the total concept of decentralization. Crypto collateralized stable coins has issues revolving high collateral requirements and risks of auto-liquidation. This Research Project aims to propose the use of an alternative architecture for the creation of a functional and secure stable coin.