…s will service crypto-native applications such as DEXs, decentralized financial products and dApps. At risk of stating the obvious, trustless execution of smart contracts simply can’t rely on tokens that can be frozen. Free of major external dependencies (ignore the oracle in the room for now), crypto-backed stablecoins may be more easily and reliably integrated into the emergent infrastructure for programmable money and smart contracts.
Disagree. Hybrid stablecoins are the best stablecoins. Basically one stablecoin token supply that uses multiple Bancor contracts where the underlying reserve currency is another stablecoin. So long as the hybrid stablecoin is matched as a trading pair with every other stablecoin AND cannot under any circumstances be traded on any exchange, then the hybrid system is better.
If any one of the other stablecoins freezes up it doesn’t cause the value of the hybrid stablecoin to freeze up because somewhere in the system another trading pair exists utilizing Bancor.
The hybrid system requires participants to be whitelisted to send transactions to Bancor contracts however which implies centralized authority is needed to maintain a stable value of the token. Its still better and in 5 years time people will still prefer to use a hybrid over other options any day of the week.