Rune Christensen, the founding father of MakerDAO, has proposed a novel resolution to the Stablecoin Trilemma.
This trilemma posits that reaching a secure worth pegged to the greenback, sustaining decentralization, and scaling to fulfill demand are mutually unique targets.
Christensen’s resolution includes a twin stablecoin framework, envisioning the evolution of Maker’s DAI stablecoin into two distinct entitiesNewStable and PureDAI. These stablecoins will tackle essential elements of the trilemma by prioritizing utility and scalability whereas guaranteeing a greenback peg and upholding pure decentralization.
In accordance with Christensen, DAI will probably be totally deprecated as soon as the ecosystem implements and adopts these options. Nonetheless, the timeline for this transition relies on the group’s adoption velocity.
NewStable
NewStable would be the major successor to DAI, prioritizing development, yield, and resilience. The decentralized stablecoin could be crafted with utility and adoption in thoughts.
In accordance with Christensen:
“Most Dai use instances will probably be succeeded by NewStable, which can deal with mass market adoption and regulatorily compliant Actual-World Asset (RWA) backing, with decentralization used as a robust device to make sure transparency, resilience, and checks and balances.”
The stablecoin will preserve a relationship with Maker and inherit Endgame’s tokenomics, development focus, and governance framework.
Moreover, NewStable incorporates a freeze operate akin to business requirements seen in different main RWA-backed stablecoins. Implementing the freeze operate is anticipated to stick to the rule of regulation in jurisdictions essential for Maker’s authorized recourse towards RWA collateral.
This method enhances safety, stability, and reliability, bolstering NewStable’s world mass market adoption potential.
PureDai
Alternatively, PureDAI goals for whole autonomy, distancing itself from centralized affect by counting on decentralized collateral.
Christensen defined:
“PureDai will function solely purely decentralized collateral akin to ETH and stETH, free-floating peg like Rai, maximally decentralized oracles and no governance or budgets.”
He stated this stablecoin would turn into accessible after “a number of years” and would reduce all enduring ties to Maker at launch.
Upon launch, DAI customers can seamlessly transition to PureDAI by way of Maker frontends. Nonetheless, it will be unique to the Ethereum mainnet and should broaden its attain by way of layer-2 options and bridges supporting cross-chain transport.
