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#Post#: 2--------------------------------------------------
Stablecoin Mechanism in DIVI Wallet To Increase Vendor Adoption
- Rough Proposal
DIR By: Johnny401View
Date: June 30, 2018, 9:10 pm
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[center]Stablecoin Pegged at $1 To Increase Vendor
Adoption[/center]
Challenge
I believe one of the biggest challenges to vendor adoption is
the risk surrounding volatility. Although as investors, we
realize that the more volatility that a coin exhibits, the
greater the chance for potential profit. A vendor might not
appreciate the same level of risk as they have needs to handle
their operational expenses. I believe many would worry about
their holdings being worth $5,000 one day and potentially $100s
+ / - the next day.
Levels of Risk
1) Accept 100% of Divi -- Great for the ecosystem, highest risk
of volatility
2) Payment Processor (ex: BitPay type service) -- Does not
distinquish us from products like Bitcoin
3) * New * Stablecoin in Wallet -- Vendors can move a
percentage of their Divi holdings to a pegged 1 to $1 stablecoin
Solution - Quick
The Divi Wallet provides an easy way to lock up a portion of
their Divi against a pegged $1 stablecoin. When the vendor
wants to use the wallet features outlined in the whitepaper,
they can convert that portion of their holdings back to Divi.
Trustcoin/TurstUSD is an option within the Divi wallet I'd like
to explore.
Scenarios
1) The vendor accepts Divi. The customer wants to send $10 worth
of Divi. The customer enters $10 and the proper amount of Divi
(based on some type of feed) is sent to the Vendor. The vendor
holds the Divi, and accepts the volatility.
2) The same scenario as $1. This time, the vendor moves the Divi
they've collected into either staking or a masternode. So
although they are accepting the volatility, they have a positive
investment vehicle.
3) The vendor accepts Divi. Once the vendor receives the
payment, they can decide (before/after) what percentage of that
Divi needs to be concerted to a dollar pegged stablecoin. This
would happen within the wallet and tech details hidden from the
vendor.
4) The vendor has held the concerted stablecoin Divi for 2
weeks. The amount of their holdings are approxiamately the same
amount as it was 2 weeks ago. They convert their stablecoin
back to Divi. They decide to participate with the smart wallet
features.
5) Vendor decides to accept Divi within a Bitpay type service
where they never see the actual crypto. I don't think this
benefits us since Bitcoin can easily do this effectively.
Divi Advantage
I don't think it makes sense to take the BitShares approach (see
below) where the USD pegged coin is create by backed collateral
of Divi and created into existence. These algorythm stablecoins
such as bitUSD and MakerDAO. I believe they are far too
experimental at this point. Instead, I recommend looking into
Tustcoin/TrustUSD:
HTML https://blog.trusttoken.com/trueusd-a-usd-backed-stablecoin-you-can-trust-9688796cfd0d
I want to use TrustUSD to eliminate vendor volatility NOT!!! as
the mechanism to exchange goods and services. If someone wants
to take advantage of any of the features outlined in the
whitepaper, they need to utilize Divi.
Additional
There are some interesting projects such as BItshares/bitUSD and
Maker/DAI which creates $1 asset backed coins against
Bitshares/Maker collateral. Unlike TrustUSD, this process is
completely algorithmic and I feel outside our scope.
#Post#: 8--------------------------------------------------
Re: Stablecoin Mechanism in DIVI Wallet To Increase Vendor
Adoption - Rough Proposal
DIR By: oriz123
Date: July 13, 2018, 8:37 pm
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Can you explain a bit about the mechanism in which this could be
achieved? I tried reading the link, but I'm still jetlagged lol.
From what I understand, divi currently plans to give vendors the
option to either accept payments in divi and hold on to them,
enjoying the volatility, or get paid in divi but have that divi
instantly converted to USD. In short, How would a stablecoin be
different to this approach?
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