I will recap what was discussed in the meeting today about stablecoins, and provide a compendium for further info.
If you use a stablecoin, there is at least greatly reduced volatility, making it easier to more closely approximate or equal the value of rewards to the true utility payout, while having less need to dynamically adjust the rate of the reward, as will be the case with a much more volatile coin, which adds more complexity to design and implementation. With a volatile coin, to dynamically get the price you would need to use a price oracle to collect data from various decentralized and centralised exchanges in order to at least approximate the market price. Conversely, if you have a fixed rate of reward denominated against a volatile coin, then the true utility payout will actually not be (near) constant, which will be bad for validators, full nodes, etc., as well as for users and the whole network due to nodes being less likely to stick around due to uncertainty.
- Maker DAO a stablecoin that uses a utility and governance volatile MKR token, for holders to use in governing the DAI stable coin
- Havven: another stablecoin that involves issuing tokens against a distributed collateral pool. James Ray’s opinion: this seems simpler than DAI, while also intuitively seeming to be more desirable. See e.g. this Twitter thread for a related perspective.