Is StableCredit Another Elastic Currency?

[davoice321]

From yEarn Finance.

StableCredit is a protocol that combines tokenized debt stable coins, lending, AMMs, and single sided AMM exposure to create a completely decentralized lending protocol.

You can provide any asset and create tokenized credit called StableCredit USD (can also support EUR, JPY, etc).”

It’s hard to understand what its, but DC Investor described it this way.

“Bottom-line: there’s no on-chain protocol in existence capable of
meeting the demand for the level of assets being deposited into Yearn,
so Andre created one.

IMO, if this works, it will probably become a blackhole for assets, and
the world’s most liquid stablecoin & AMM.”

@cloudedlogic corrected him on his assumption that there’s no on-chain protocol that can handle the liquidity needs, but is this another elastic currency? Based on what I’m seeing, I’m not sure, but I don’t really understand what it is yet. @cloudedlogic your thoughts?

David Hoffman tries to explain:

• This discussion was modified 1 year, 4 months ago by  davoice321.

[cloudedlogic]

Hi @davoice321 .. yeah I corrected him because for some reason many of the ethereum influencer community try to leave out AMPL.. meanwhile, its 2 years ahead of everyone… all fully audited and secure contracts and IS THE FIRST scalable collateral. So really want to bring home this message…

[davoice321]

Thanks! Yeah. I’m trying to figure out what it is.

Here’s another post that he wrote (I think you mentioned this), where he is basically talking about a currency that rebases on a block by block basis.

So, the thing is that these folks want to use some sort of rebase mechanic .. but don’t want to use the original asset?

Is that what we’re seeing? Use the mechanic but leave out the base asset (#Ampl)?

• This reply was modified 1 year, 4 months ago by  davoice321.

[cloudedlogic]

yeah that’s what I’m seeing as well. Will read up

More as well. Please share whatever else you find. Cheers

[davoice321]

Yeah. I’ll listen to that video too from Bankless. But yeah, the reluctance to discuss Ample as a legit asset is something that needs to change.

[Kiry]

Very interesting stuff, thanks!

• This reply was modified 1 year, 2 months ago by  Kiry.

[xraymikek]

It’s not elastic, but a sort of universal credit of sorts. Deposit anything in their AMM get a permissionless stablecoin in return.

Add a billion of assets, get a billion mcap of new stablecoins.

[davoice321]

Hey! Good to see you here! Thanks for joining us.

[FudBuster]

That’s what I figured, and it’s going to do just that, billions of stable coins. What’s the best for Ample to catch that flow? Pair up with it?

[davoice321]

So it looks like some kind of automated swap system where the asset always balances back to one because other assets are traded for it.

So basically the stablecredit asset is always worth $1 because it is collateralized by the underlying asset.

So it’s not comparable to ample because ample is a primitive (backed by nothing).

The interesting thing would be to include ample as one of the underlying assets that can back the credit dollar.

More here: https://twitter.com/andrecronjetech/status/1304434767182659584?s=21

100% correct, think how uniswap handles reserves and prices, same setup. The nice thing is, arbitrage traders are incentivized to balance out pools. So if LINK was low and USDC was high, they gain benefit by trading in LINK and USDC out. Keeping the system at equilibrium

— Andre Cronje 👻🐸 (@AndreCronjeTech) September 11, 2020

100% correct, think how uniswap handles reserves and prices, same setup. The nice thing is, arbitrage traders are incentivized to balance out pools. So if LINK was low and USDC was high, they gain benefit by trading in LINK and USDC out. Keeping the system at equilibrium

— Andre Cronje 👻🐸 (@AndreCronjeTech) September 11, 2020

[davoice321]

Finally, a simple explanation of stablecredit:

https://decrypt.co/41483/yearn-finance-preps-a-new-stablecoin-based-defi-protocol

[davoice321]

Confirmed: stablecredit is a collateralized stablecoin. Here are the initial assets supported.

https://twitter.com/iearnfinance/status/1305476091918901249?s=21

StableCreditProtocol v1 supports any of the following @chainlink assets as collateral;

- LINK
- MKR
- REN
- SNX
- YFI

- DAI
- SUSD
- TUSD
- USDC
- USDT

- renBTC
- wBTC

Open alpha will start this week.

— yearn.finance (@iearnfinance) September 14, 2020

StableCreditProtocol v1 supports any of the following @chainlink assets as collateral;

- LINK
- MKR
- REN
- SNX
- YFI

- DAI
- SUSD
- TUSD
- USDC
- USDT

- renBTC
- wBTC

Open alpha will start this week.

— yearn.finance (@iearnfinance) September 14, 2020

[davoice321]

Some additional info: https://yearn.substack.com/p/yearn-finance-newsletter-2