ZSA Shielded Stablecoins

[Jgx7]

as long as the collateral is done properly does it matter? arbitrage is not a bad thing. makes markets more efficient.

[hanh]

I mean that the ZEC stable coin cannot offer better than the risk-free interest rate. Anything that offers substantially more is not risk free.

[Jgx7]

right. And it’s probably less than risk free because it can subsidize gas and also a fee to blockchain. But only really works well with an ecosystem that has a float.

it’s a floating rate. and totally market based

[tim_ukrainian]

@JoakimEQ

Hey Tim, in most jurisdictions even swaps to stablecoins are taxable - so there is not much tax evasion possible with the stablecoin itself. Maybe you might be referring to pseudonymity of the blockchain itself?

Sorry « most jurisdictions » was probably a wrong word.
My knowledge of taxes is mostly limited to Europe and France in particular and there you’re taxable only if you change stables to actual euros or buying something in France with crypto.

As long as you are staying on the blockchain, you’re not taxable.

You might be right there.

But nevertheless, IMHO we shoud look only on trustless stables like DAI and IST.

[noamchom]

Pulling this Z-stablecoins discussion out of the Community Grants Minutes Notes

@Milton

We don’t need to create our own decentralized stablecoin on Zcash. We can bridge decentralized stablecoins from other chains.

100% - no need to reinvent a wheel; particularly wheel(s) that we don’t have the expertise with

@noamchom

When asked about customer input in the development of the Ford Model T, Henry Ford famously said, “If I had asked people what they wanted, they would have said faster horses.”

We shouldn’t be trying to make faster horses right now!

See The Last Swing of The Stick - #45 by JoakimEQ

DAI can work, USDT and USDC might get frozen on the bridge contract if it becomes popular.

@pkr

It’s high time to embrace decentralized protocol integrations for ZEC and stop lighting money on fire trying to wine and dine some politician.

@skyl

Stablecoins should be backed by what they represent

Uh. What is dai?

I’m a ZDAI or DAIZ dreamer (Shielded DAI). For the next 3-5 years ahead, that is probably the closest solution that we’ve even got a moon shot chance at delivering.

1st major dependency - when do ZSAs go live
2nd major dependency - who receives the grant/ does the work to build ZSA-DAIZ

[JoakimEQ]

We already tried to scope it earlier but had a hard time finding the related ZSA specs for this though, for example liquidity provisioning on the ZSA orderbook is not clear to me at this point (but have not kept up for a months now).

The problem is it would probably rely on some kind of multisig/MPC approach at first to bridge it over. In the future if Zcash moves to PoS one could think of other ways. We have some ideas for this, and probably could build it - but running it is a different thing and might warrant a decentralised approach.

So:

• Someone needs to run the bridge validators (ETH + Zcash nodes) and manage its decentralization
• Someone needs to manage the liquidity on zsaDAI on Zcash

[the_dude]

I saw that stable coins were on the docket at the Meet Up and it got me thinking about the possibility of having a stable coin that’s not pegged to a fiat dollar.

Instead it’s pegged to a digital commodity, computation.

Imagine a DAI system that strictly uses Zcash (as the collateral), but the value of the “zcash redeemable stable coin” is determined using an open market for compute power. Where buyers pay in Zcash, giving the unit of compute power a provable price in Zcash.

-Computational buyers & sellers are randomly connected on chain.
-The proof of compute & payment is posted on chain.
-The DAI style Zcash vault, redeems the stable coin for Zcash at the going zcash <> compute rate. As well as makes sure the peg isn’t lost.
-The unit of compute for the stable coin value peg, is determined using POS governance (so it can increase as the tech gets better).

The computational marketplace can be for SNARKS. Similar to whats happening with FileCoin’s computational market place.

[Blazin8888]

ZDAI would be incredible. The demand for private stablecoins on a L1 blockchain with low fee would be nuts.

[noamchom]

Not to mention, that they would at some point also be yielding assets/ whether private-stablecoin yielding, and-or ZEC PoS yield (I’m saying my prayers diligently that these features gets onto the roadmap one day).