Proving a decentralised stablecoin, the Holy Grail of cryptocurrency
The high volatility of cryptocurrencies precludes their use as a medium of exchange or unit of account:
The root cause of this volatility is their lack of monetary policy for price stabilisation. Although some cryptocurrencies seek price stability (i.e., stablecoins), current offerings are either: too centralised and/or only based on heuristics for which stability and convergence guarantees can’t be derived, resulting in loss of trust that causes price crashes.
The following paper solves the Holy Grail of cryptocurrencies (1, 2, 3, 4), closing an open problem for over a decade: a fully decentralized stablecoin proving guarantees of stability, convergence, truthfulness, faithfulness, and malicious-security.
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