DigiDollar: The DD stablecoin

      

DigiDollar, or DD, is an Algorithmic Stablecoin currently being built on the Digibyte Blockchain. DigiByte’s founder, Jared Tate, says that he predicts this to be the most innovative decentralized tech since Bitcoin. It will let you exchange and store USD on one of the most decentralized blockchains in your own wallet. This is a truly decentralized UXTO Stablecoin.

Two transaction types: Minting and redeeming.

Mint through adding DGB as input, and redeeming to turn the DigiDollar back to DigiByte. DD keeps its price stable by the use of Price Oracles run on their blockchain. They take the amount of DGB within DigiDollar’s USD liquidity, and then the data oracles automatically fetch the current value of 1 DGB through multiple exchanges to know what price it is measured at. Every time DigiDollar is minted, its price is verified through 15 different oracles.

This way, they can always automatically make the value of 1 DD to 1 USD through comparing the current price of DGB to the amount of DGB used to mint DD. To prevent attacks, minting DD does require a lockup period for the DGB you put in. The lowest lock period you can choose is 30 days. In fact, you have to lock up much more DGB than you will actually agree to receive in DD. That extra locked up DGB will be locked up as it is for the lockup period, kept in DGB value, while the actual DD you redeem will only be tracked in USD value.

If locking up for only a month, you must lock up 5x the amount of USD worth in DGB and be willing to wait a month to get it all back. For example, if you lockup 500 of DGB, you will get 100 of DD and get the 400 remainder back in DGB; and at the end of the month, that 400 of DGB may have changed in value, but you will receive the same back.

If the price of DGB drops dramatically, it will be unlocked faster. Be careful if trying this yourself; lockup periods can last up to 10 years if the users chooses. Minting your own DD is not recommended for average users.

The Benefits of DigiDollar

DigiDollar will also help make the DigiByte token itself more scarce and valuable, because people will take DGB out of circulation through minting DD.

It will also bring forth the vision of regular fiat commerce while still being secured within people’s own wallets, through possibly the most secure blockchain in existence. Far more secure and decentralized than any bank, and even most blockchains.

It will also enable the use of DeFi on Digibyte, letting people use it on platforms for lending, borrowing, and trading.

It’s also most likely to have no counterparty risk, not even the need for any law enforcement or IRS to be involved; it is secured through its miners and community.

And the fact that it is 100% liquidated by DGB, the native currency itself, ensures value for the DGB token and adds simplicity to DigiDollar’s formula.

The full whitepaper can be found here. General information can also be found on DigiDollar’s main page. This project is still within the early stages, and elements of it may change based on community feedback.

Advisory: This is not financial advice. All trades, swaps, buys, sells, wallets, seed phrases, etcetera, are 100% your responsibility and require careful attention. Always send a small test transaction to a new wallet or exchange address before sending large amounts. It is up to each person as to when they should buy or sell a crypto since this isn't trading advice. Cryptos can move wildly in price, up or down.