A place for developers to talk about building on Farcaster.

/dev

nova

The 🐂 is fast approaching, with $DOGE already leading the way!

Our $DOGE-backed stablecoin $USDO has been in experimental/public testing for over 10 months on Dogechain now, maintaining its $1 peg throughout.

We believe the time has come to moved to a fully-fledged release; capped off with a full audit from Bailsec.

We've opened up a public proposal via $NOVA's snapshot for funding this audit, and bringing $USDO into the prime-time!

https://snapshot.box/#/s:nova-dao.eth/proposal/0x00bed7546e55a1edc4e061eb65afa373c17001bf2d59bbbdffccfe00dbaddc78

I must once again ask you all to respect the fact that I built a stablecoin backed by dogecoin, and it's held the peg for 10 months without issue.

(this is easily the dumbest, but also the best thing I've built this cycle)

e/acc || Building @ /nova || Catgirl maxi @ /imgnai || Dogecoin core dev 2013/14

I respect you fren! 👊
But I see a flaw in the logic. I hope I am wrong, but I can’t not say it. Feel free to dm me.
I am not trying to be disrespectful in any way!

Street Artist and early hodler

                         & Creator of $FREN and $FRENLY 🤝 & $TRDR

Feel free to throw it out, it's getting an audit anyway 😅

Every stablecoin carries this risk :’) even usdc doesn’t have instant liquidity available - treasury bonds for example can’t instantly translate to on-chain backing, especially outside of trading hours.

USDO literally won’t let you mint a USD equivalent token unless there’s a significant level of backing in dogecoin available; running up to a 900% backing requirement, meaning it’d survive a sizeable black swan sized nuke while maintaining the peg.

Anyone minting or redeeming USDO would then pay a variable fee rate (starting at 0.25%) which is paid out to those who are staked in to the pool, keeping it competitive with other stable yield options (while drawing that yield from real fees).

👊 again, I respect you a lot!
And I admire your skills and “devotion” to solving this. But I am afraid it is mission impossible. Either you have to hold enough USD, (which is very profitable with zero interest, ref. USDT) or you will always have the liquidation risk.. 🤷 you can give it a “margin of safety” but it doesn’t exist. So you are left with either holding much much more collateral, or simply enough USD. Please elaborate how you can avoid this?

365🤝