Stably: Blockchain USD-Backed Stablecoin Cryptocurrency?
What Is Stably?
Volatility and cryptocurrencies are two terms that are always mentioned synonymously. Even though Bitcoin’s volatility has been reducing considerably ever since it was launched back in 2009, it’s still not very steady store of value. This is where stablecoins come in, as they are assets with price stability features that make the great for both short term us and also long-term value storable. Stably now seeks to offer a more practical and immediate solution with its own stablecoin.
What Does Stably Offer?
Unlike other decentralized stablecoins that have received mixed results in the market, Stably uses a centralized hard currency reserve to derive an organically acquired price stability. Even though this approach does remove most characteristics of decentralization, it’s simply impossible for any stablecoin to have an organically stable price without having the foundation of a stable asset like hard currency. Additionally, organic stablecoins are more lucrative since they possess greater potential for better scalability and reliability on enterprise scale.
How Stably Blockchain USD-Backed Stablecoin Cryptocurrency Works
Stably plans on launching this venture as a conventional Canadian MSB (Money Services Business), but without following the traditional lending or banking business model. The Canadian or US dollar will be used to set up the centralized reserve of hard currency. This reserve will be managed securely and transparently by Stably, with each Stably token being backed at a ratio of 1:1 with real hard currency.
If you want to buy Stably tokens, then you will have to wire US or Canadian dollars directly to its reserve and get the equal number of stablecoins. Users will also be able to send Ethereum coins that will first be converted into hard currency before being added onto the reserve. The reserve will always accept all these currencies on the basis of 1:1 to promote organic stability. Additionally, like other stablecoins in the market such as TrueUSD and Tether, Stably tokens will be available for market trading, whether on decentralized or centralized cryptocurrency exchanges.
Stably Promoting Transparency
Despite being the biggest player in this sector, Tether does not have enough transparency in how it operates its USD reserve. Stably intends to take up a significant share of Tether’s market cap by establish itself as completely trustworthy and transparent. To achieve this goal, Stably will conduct regular audits so that the public can verify the latest reserve balance, as well as publicly verifiable off-chain and on-chain transactions.
Stably Interoperability Across Multiple Cryptocurrencies
Stably is set to initially integrate well with the established Stellar blockchain network that supports faster payments with cheap transaction fees. By integrating as an anchor on this network, Stably has positioned itself strategically to issue credit in token form for any kind of asset. This move will make Stably tokens interchangeable across both protocols, allowing for more convenience for its users. There are also future plans to integrate Stably into other upcoming blockchain protocols that show a lot of promise.
Stably is looking to solve the volatility issue that has long plagued the cryptocurrency sector. The launch is planned for late summer 2018 with plans on listing it on the leading cryptocurrency exchanges to offer buyers more stablecoin options. In conclusion, with multiple beneficial applications in risk diversification, decentralized apps and inter-blockchain payments, Stably is poised to be a valued addition to the stablecoin industry.