My 2 cents on SyntheticRebaseDollar

I have read a few comments on SyntheticRebaseDollar and I do not think they are on the same page with Andre.

I will try to explain what is SyntheticRebaseDollar (Introducing SyntheticRebaseDollar a credit based rebase index).

Definition: SyntheticRebaseDollar is a price-inelastic, supply-elastic, stable coin whose value is based on its underlying collaterals.

SyntheticRebaseDollar ≈ Near-Real-Time $AMPL based on collaterals.

(If you do not know how $AMPL works, here is the white-paper)

The differences between $AMPL and SyntheticRebaseDollar are

  1. Near-Real-Time: SyntheticRebaseDollar rebases every block, while $AMPL rebase every 24 hours.
  2. Synthetical: SyntheticRebaseDollar’s value is based on its underlying collaterals (USDC etc.), while $AMPL is not.

Why Near-Real-Time? It is supposedly and hopefully bring the price SyntheticRebaseDollar to the equilibrium, if exists, sooner.

Arguably, some of the goals of SyntheticRebaseDollar are

  1. providing a stable and solid foundation for the DEFI world
  2. providing a proxy for all other coins classical coins (BTC/ETH etc.) 2. DEFI coins (YFI etc.) 3. stable coins (USDC etc.)

Comment 1: SyntheticRebaseDollar looks like an index, but calling it “Vanguard of DEFI” is misleading and it does not lead us to somewhere we do not know yet.

Comment 2: It is way too early to discuss details including but not limited to governance, weights, etc., because it is a coin we have not defined yet.

I admit I have not figured out everything yet, but I feel a new empire is building on the SyntheticRebaseDollar. I have a few questions left for everyone to discuss.

The Ultimate Question: To define SyntheticRebaseDollar, we must figure out what is the “ideal” DEFI world we want first. Otherwise, there is no direction at all and all other questions do not make any sense.

However, this question is too vague and it is probably unanswerable. I propose several answerable questions and hopefully, it can help shed some light into the ultimate question.

Question 1: Andre proposes to track 3 types of coins 1. classical coins (BTC/ETH etc.) 2. DEFI coins (YFI etc.) 3. stable coins (USDC etc.). What would happen if we only track stable coins? What would happen if we only track classical coins and stable coins?

Question 2: Is rebase a really good idea? Why or why not? Is rebase every block a good idea compared to rebase 24 hours?

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Im on the same page with you about intention/function. Andre talked about it as “an auto rebasing index” which I think confused a lot of people. In my mind this is basically the absolute thinnest protocol you can build on top of chainlink to create a versatile stablecoin.

Question 1)
What would happen if we only track stable coins?

  • I dunno, nothing particularly interesting. Basically you would get Mstable or something, but Im not really sure why you would do this.
  • What would happen if we only track classical coins and stable coins? You would get Maker but with much more capital efficiency, no stability fees, or unnecessary governance. See my comment (and the overall thread) here: Suggestion what to do with SyntheticRebaseDollar

What is your role? Would you like to work on this project with me? I am an engineer, and I have been studying stablecoin designs for most of 2020.

Yes, I am an engineer but new to smart contracts. I just get started to stablecoin designs since a month ago.

"Instead in this system, they get ALL of the same benefits, except 100% collateralization (your collateral goes much further). "

I have read your comment and I think you have very good intuitions and judgement. Not sure how I can help but we could start to discuss stable coins and start from there.

My discord ID ItsBadForYa#5513.