Incentivized Third Party Collateralization for Stablecoins
Computer Science and Game Theory
2024-09-01 v1 Cryptography and Security
Abstract
Stablecoins, which are primarily intended to function as a global reserve of value are insubstantial in their design and present many failure points. The primary mechanism to enable these coins to hold on to a fixed value is by backing them with collateral. Fiat collateralized stablecoins require users to trust a centralized entity, which breaks the total concept of decentralization. Crypto collateralized stablecoins have issues involving high collateral requirements and introduces risks of auto-liquidation. In this paper we aim to propose an alternative architecture for the creation of a functional and secure stablecoin.
Cite
@article{arxiv.2309.11521,
title = {Incentivized Third Party Collateralization for Stablecoins},
author = {Souradeep Das and Revathi Venkataraman},
journal= {arXiv preprint arXiv:2309.11521},
year = {2024}
}