Dan Larimer Confirms a New EOS Stablecoin Pending Legal Review is Coming to Market
EOS seems to have a lot of developments coming in the near future. First, Daniel Larimer, the CTO at Block. One, the company behind EOS made an announcement of an announcement, a la Tron founder Justin Sun style.
Now, he shared or rather confirmed his plans for an EOS stablecoin. On April 1st, in response to the question, if his EOS stablecoin is still in play or would rather be implemented on BitShares, Larimer said,
“My stable coin ideas are pending legal reviews before publishing.”
He further confirmed that it will have crypto over-collateralization (OC) which according to Investopedia, is the process of posting more collateral that is needed to obtain financing. This is often used as a credit enhancement method by lowering the exposure of creditor to default risk.
“My idea boils down to combining a short position and bancor and using bancor fees to automatically recollaterize and using a price feed to nudge bancor price in the right direction when the market fails to for too long.”
He further explained that all shorts will hold shares in one short position and market maker. In his estimations, he says the fees from market making that exceed the interest will earn lending and keep collateral solvent.
Price feed he says could come from Oracle which will most of the time won’t be in play as the goal of price feed is only to adjust bancor price when it deviates far enough for long enough.
The Big Upcoming Announcement
Apart from the stablecoin, he also shared that EOS is faster and more flexible than ETH that makes EOS better than the second largest cryptocurrency. He further shared his views on block reward which he says shouldn’t be there rather producing blocks should have cost attached with them. As for who would have the incentive to produce, he replied in no uncertain terms, “those who want to transact.”
After being silent for so long, Larimer has created some noise in the crypto space for EOS that saw its price surging. Today, in tandem with BItcoin, EOS is currently up 10 percent at $4.58. Among top cryptos, EOS has been the best performing asset in the first quarter of 2019.
This upcoming event that would be hosted by B1 will be held in Washington DC and will be live streamed for the public online. B1 that is actively working on a social media Dapp and has registered trademarks MEOS nad XEOS will also be releasing a roadmap.
The focus according to Block.One CEO, Brendan Blumer is on “delivering, safety, alignment, and decentralization, to the mainstream personal infrastructure.”