Alexander C. Kaufman
@kaufman
Thanks to your recommendations, I started listening to the Unchained podcast. I have some questions for stablecoin experts. What, exactly, qualifies something as a "synthetic dollar?" Are there other kinds of synthetic dollars than $ENA?
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ciefa 🐌 eth/acc
@ciefa.eth
>What, exactly, qualifies something as a "synthetic dollar?" When the asset is pegged to the value of the USD without being actually backed by USD. e.g. trading the S&P500 Index on Ostium is trading a synthetic asset (it's being pegged to the value of the index, while not being backed by shares of the companies in the index) As for other stables besides Ethena's USDe, I just searched real quick and was only able to find $sUSD by synthetix - I'm personally not aware of any others :S
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ciefa 🐌 eth/acc
@ciefa.eth
To expand on that and give you another example; @eggman.eth's experimental Dogecoin-pegged stablecoin relies on overcollateralization, like for example $DAI (now $USDS) does. Syntethic stables however are usually pegged through code/algos, not by assets (and especially not by USD itself)
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Alexander C. Kaufman
@kaufman
This is super helpful! Thank you
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ciefa 🐌 eth/acc
@ciefa.eth
Np! Feel free to reach out to me whenever you have a question, will try my best to answer :)
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