Harmony stablecoin idea

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I had an idea. I’m not a programmer so idk if it’s even possible so I’m sorry if this sounds stupid but:

Since Harmony wants to become the “Bridge to All Chains” would it be possible for them to create a stablecoin backed equally by every coin they bridge with?

They could use a trading algorithm similar to $UST to maintain the peg but it would trade an equal monetary amount of all coins. So for example, if there’s ten coins on the chain that participate it would buy $0.10 of each to then buy $1 of Harmony, which is then locked up to mint the stablecoin. My logic is that to pull off an attack like UST/LUNA they’d have to attack all associated crypto simultaneously. Idk if that’s true or not though but it makes sense to me.

Also, locking up the ONE would remove it from circulation and raise the price of ONE. Plus all the daily algorithmic transactions to maintain the peg would burn a ton of ONE in transaction fees.

Plus it would give Harmony a foothold and a niche in the market that nobody else has done, and with a name like “Harmony ONE” it seems very on-brand and practically sells itself.

Thoughts?

2

Backing a stablecoin with extremely unstable and multiple cryptos seems like a big no no. Literally any one of the 10’s or Harmony’s price going haywire would mess up the “backing” of the stablecoin and break the peg.

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haha backing crypto with another crypto is a bad bad idea look at luna /ust!

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My logic was, to attack it the same way they did UST/Luna, they’d have to attack all associated cryptos simultaneously. I could be wrong.

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I think its do-able.Something like DAI.Its a nice idea.Universal crosschain stablecoin

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What if all crypto falls 80%? and people want liquidity?

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Either have some mathematical safeguard, or have each participating chain put a predetermined amount in a collective reserve triggered to sell at a predetermined stop loss or slowly pack the coffers and back it with a certain % in USD.

I’m sure the specifics could be worked out by smarter minds than mine.

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UST mechanics are basically seigniorage, which, also is used by tomb forks, which generally naturally implode unless bailed out.
OIN finance has a deployed branch in harmony and allows the use of ONE as collateral to mint ONEUSD, although i dont know how polished the produt is, QiDAO (which is an actually functional DeFi product rather than another woke group with a multisig) has MAI, which can also be collateralized with ONE and/or ETH, it is effectively a fork of makerDAO.
if we want a native stablecoin, we should look for a decent enough overcollateralization, or to use/improve current ones.

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I don’t understand why the Harmony team isn’t making their own products to use on their blockchain. It’s like Apple coming out with iOS but never releasing itunes or the App Store.

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The idea isnt to make core team build the blockchain and also build on the blockchain, they build the blockchain and attract project builders into it

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But if you have a vision for your blockchain, why not have people in house that work on products for it? Otherwise your blockchain is only as good as other peoples projects.

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Sorry but I don’t think algorithmic stablecoin can actually work. Look at UST. They reputation is bad now

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haha ,making things complex doesnt guarantee that they will work. it actually leads to UST blowups. always use Occam’s razor.

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