Platform Tether, the Issuer of the homonymous stable cryptocurrencies based on bitcoin (the Protocol add-in Omni), the rate of which is tied to the value of the dollar, the dollar starts licenzirovanie
and the Euro EUR₮ on the Ethereum blockchain in the standard ERC-20.
According to a press release from the company:
Low compared to the Bitcoin network Commission and fast transactions, Ethereum will allow to effectively conduct arbitrage trades using tokens Tether ERC-20. Several exchanges of partners already working on the integration of new tokens to add to their portfolio.
At the time of writing, the amount of issued tokens ERC-20 small compared to the half billion money supply Tether-based Omni – a total of about 110,000 and $ 14.5 million Euro. First and foremost, digital tokens will get walking on affiliated with Tether platforms such as Bitfinex and Ethfinex.
In a press release reported that the audit of smart contracts new tokens spent, Zeppelin Phil and Diane (Phil Daian) from Cornell University. However, Diane and Zeppelin emphasize that they only conducted a technical audit of contracts themselves, and I can’t say anything about providing a new token with Fiat currency, as claimed by the company Tether.
The question of providing a Tether with Fiat currency is the most vulnerable point of the new stabilio and it has still not received a satisfactory answer, and the information about the close ties between Bitfinex and Tether leads to new questions as well remain unanswered.
However, the market demand for stable currencies is enormous. Andrew KIS (Andrew Keys) from the company ConsenSys 18 in their predictions for 2018 says:
Stabilini be the basic financial tool for hedging and creation of derivatives that are critical on the path from the industry the Wild West to a reliable, clear and proven financial products. MakerDAO, Variabl
Basecoin and create their own ecosystem, but I think that there are huge opportunities for the banking institutions able to provide value, liquidity and regulatory compliance in the creation of an ecosystem of digital assets.
I predict that we may see the Bank staplcotn in 2018, provided that its creators will be able to negotiate with regulators.
If KIS is right in their predictions, the Tether is clearly not stablein Bank, of which he speaks.
Market talkenov at the beginning of 2018
Tokens Tether ERC-20 from birth, have a competition with Maker – the token ERC-20 DAI, the rate equal to the U.S. dollar, launched late last year. DAI is a complete opposite of the Tether, it is a token, fully secured cryptocurrency assets, the emission of which, as well as providing a fully transparent
(requires Metamask or Mist). On the January 8 issue of DAI is just over $ 8 million.
DAI is the second version stalmine, however, this is largely an experimental cryptocurrency and the creators of the ceiling limit its market capitalization of 50 million dollars. To achieve it, the system will shut down, and there will be a «global calculation» (Global Settlement): DAI holders will receive their proportional share of the assets collateral deposits. The launch of the full version DAI is scheduled for summer 2018. But now DAI becomes a basic unit of decentralized exchanges such as IDEX and RadarRelay, and he Buterin in the work describing new scheme of the ICO offers to attract funding not live or bitcoins, and DAI.
Stability – real or imaginary
The creators of the Tether do not cease to assure the community 100% security Tether with Fiat funds, but refuse to publish a detailed Bank balances, which in itself is fuelling serious concerns users. Of course, small fluctuations of the cryptocurrency won’t be catastrophic, but «catastrophic event» of a possible mass exit of users in the dollar, in which all the secret will be revealed.
The issue of DAI is completely transparent and does not depend on banks. However, the main vulnerability DAI is a sharp collapse of prices ether (40% or more) that it is possible for any cryptocurrency. Smart contracts are the protective mechanisms, but their effectiveness can only be confirmed in practice. Even multilogue providing DAI, which is expected in the next version, does not solve the problem – experience has shown that with a sharp drop of ether falls the course of almost all token based on it. Therefore, a guarantee of real stability, DAI can only serve to ensure the diversification issue not only cryptocurrency assets, but also assets licenzirovanie «real world», such as precious metals and Bank bonds. And it depends not on the MakerDAO and from all other projects.
Figure: (C) Roy Lichtenstein