The fourth stable coin, about the launch of which is announced this week, and the third, tied to the dollar, with the most unusual of them – CarbonUSD.
Zealots of purity of style can call stable coin of Tether clones as many as they like and a sure way to deprive themselves of earnings on growing crypto market. If the stable coin are launched – obviously, someone needs it.
Following the cryptocurrency exchanges ItBit and Gemini to launch their own coin, tied to the dollar, the announcement of the startup Carbon.
And if in the case of the listing of the first two coins everything is quite obvious, and Gemini even published the audit results confirming that on September 9,100 thousand Gemini, which are guaranteed $100 thousand in storage, then in the case of Carbon everything is much more mysterious.
The fact is that it will be possible to buy or sell a new stable coin for dollars. But the stability of CarbonUSD should provide an algorithm, at least, this idea is promoted by its creators.
The Aztec agreement on the existence of two linked tokens described in the company’s white paper is one of them stable CarbonUSD, trading to the dollar 1 to 1, the second – Carbon Credit, “absorbing” exchange rate fluctuations and not giving the first token deviate from the rate.
Relatively speaking, if the Urban Dollar costs less than $1, Carbon Credit is put up for sale through a reverse Dutch auction model for users who wish to burn their stable coin.
This creates pressure on the stable coin course, returning it to $1. The decision to hold shares is taken by the “oracle” initiating the course of the smart contract. The resulting auction from the users of CarbonUSD will be burned, reducing the money supply, and thereby creating an effective pressure on the course.
If CarbonUSD suddenly costs more than $1, the Carbon Credit tokens will simply be proportionally distributed among the ecosystem participants, which will push the rate down.
Whether any of the crypto exchanges is tempted by such a model is still unknown. The company only notes that it is negotiating the listing. Nevertheless, crypto market is good because almost every product has its own buyer.