Mar 27 2023 12:23 UTC
27 Mar 2023 at 12:23 UTC
Coinbase explains that it is now “more important than ever” to create a sham-tracking stablecoin that negates the central bank’s poor financial policy opinion.
Crypto exchange Coinbase sees its quasi-pegged “flatcoin” as one of four “critical” inventions that should be founded on its newly launched subcaste-2 network Base.
The other three include an on-chain character system, an on-chain limited order book exchange (LOB) and tools that make a decentralized finance (DeFi) ecosystem more secure.
The trading platform outlined the four areas in a post published on March 24, about a month after Coinbase launched Base, a network secured by Ethereum and supported by fellow subcaste-2 networks.
First off the club is the development of a mock pegged flatcoin. Given banking’s recent extremities, Coinbase says it’s now “more important than ever” to create a sham-tracking stablecoin that negates central banks’ poor financial policy opinions.
“[We are]particularly interested in ‘flatcoins’ — stablecoins that track levels of sham, allowing drug dealers some stability in staying power while also having resilience from the lucrative queries caused by the legacy fiscal system. ”
While the top stablecoins are pegged to a reference asset similar to US bones, flatcoins aim to be pegged to a “live price” by tracking consumer price indicators and sham data.
Coinbase added that it is also open to other ideas that “fill the space” between pegged stablecoins and unpredictable cryptocurrencies.
The concept has the blessing of investor Ray Dalio as well, who recently said he would like to see a “coin linked to pretense” to ensure that consumers can secure their purchasing power.
“The closest thing to that is a sham indicator bond but if you make a coin that says OK this is purchasing power I know I can store and put my rich people in over a period of time and distribute it anywhere I guess it will be a good coin,” he said.
Coinbase has also been encouraging inventors to develop an on-chain character system, which it says will play an “important part” in building “onchain trust” between drug dealers, Coinbase said.
Character protocols can implement a credit score or rating-like system that ensures certain criteria are met before onchain identities can interact with decentralized finance (DeFi) operations
This could look like FICO or Google runner ranking type scores on ENS names, condition reviews for merchandisers, and other actions that help build onchain trust. ”
Ganesh Swami, CEO of blockchain data aggregator Covalent, previously told Cointelegraph that this could be achieved by reviewing sales data from specific portmanteau addresses on competing protocols, as blockchain leaves behind what he describes as “literal breadcrumbs”. ”
However, Coinbase says that the character protocol should ensure stronger sequestration and stored autonomy.
In its third focus area, Coinbase says on-chain limited order book exchanges can serve as “advanced exchanges” in that they can perform normal exchange operations while preventing counterparty threats through guarding the tone.
Limit orders are used to place orders to buy or sell shares at the outer (or minimum) price limit that the stoner wants to trade. A limit order book is a list of orders for a particular security.
By taking this onchain, Coinbase makes it clear that it can offer dealers and institutional professionals a new trading venue to execute their familiar trading strategies within a traditional fiscal system.
“Base’s high returns open significant new openings for designing new mechanisms for trading spot, limit orders, options, perpetuals, and more. And, builders can use open source drivers like the OP Stack to build L3 which gives them more speed and control, potentially allowing deeper liquidity, still accessible through L2. ”
The final area of focus, according to Coinbase, is around making a decentralized finance (DeFi) ecosystem safer for drug dealers and inventors.
To achieve that feat, it wants to enable tools that cover smart contract legal vulnerabilities and protocol crime sense.
The company explains that more robust tone-service and jury-service safety testing tools can help alleviate trouble prevention, circuit combing systems and incident response systems.
Coinbase said they would also like to see further insurance protocols to serve as a “critical buffer” for drug dealers in the event of smart contract exploitation.
Meanwhile, to help set up DeFi at Base, Coinbase launched the Base Ecosystem Fund to help fund early-stage system development at Base. The subcaste-2 network now supports more than 30 blockchains, according to a recent post by Base.