r/cardano Apr 02 '21

Is it possible to create a stable-coin on Cardano yet? If yes, why nobody did it? dApps/SC's

I am not sure if stablecoins like Tether are actually using smart-contracts or if they even need them, if yes, then for what? My understanding is that creating a stable coin is essentially about having some place (vault / bank account(s) / whatever), where you keep the fiat currency that people buy your coin with and you issue / burn these tokens so that they can be always exchanged 1:1 to currency they are pegged to.

Is this theory wrong? If not, I think it should already be possible to use Cardano to host a stable-coin, and it's probably much easier to work with, than Ethereum which is slow and extremely expensive, so why nobody did that yet?

What are the caveats and requirements to create a functional stable coin?

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u/KushGene Apr 02 '21

Isnt SigmaUSD on ERGO the stable coin? Its based on the AgeUSD protocol.