PolyCash integrates with Coinbase for automated stablecoin functionality
We’ve recently made some major improvements that make PolyCash stablecoin features more automated and robust.
Background on PolyCash stablecoin business model
PolyCash makes it easy to launch your own stablecoin pegged to a currency like dollars or bitcoins. Stablecoins like TrueUSD and Tether keep coins pegged to the dollar using controls for issuing new coins and by holding dollars as collateral. PolyCash stablecoins are similar.
PolyCash is designed for betting and supports binary options payouts, but also supports more complex payout types (for example, see our Virtual Stock Market game where you can buy long and short contracts pegged to the value of stocks).
We are using the PolyCash technology to launch games for betting on eSports. In PolyCash P2P betting games, fees are charged to bettors through a small amount of coins being destroyed every time a bet is placed. Fee rates may be set to any rate (often 0% to 1% per bet), and fee rates are transparently shown to bettors. This means that the supply of in-game coins constantly reduces and for games using stablecoins, fees accrue to the stablecoin issuer in the form of reduced amounts owed to the coinholders.
PolyCash therefore supports a business model which is similar to that of a traditional bookmaker. Bettors can open an account with a node operator, deposit money, place bets and then withdraw any time, without worrying about the stablecoin & blockchain tech backing the system. Meanwhile other users may prefer to set up their own node. These users can still participate in P2P betting events, but must use exchanges whenever they want to buy or cash out their coins.
Integration with Coinbase Pro
PolyCash has had features for quite a while that enable stablecoin functionality. But we’ve recently made some major improvements.
PolyCash-protocol coins are not yet listed on any major crypto exchange. But there’s still a way to get coins or to cash out. You can buy and sell coins by transacting with any node operator who has enabled exchange features on their node. To get in-game coins, sign in to an account that you’ve created with a node operator. You can then deposit crypto such as bitcoins or litecoins. You’ll then receive in-game coins as soon as your deposit is confirmed. Sell-outs work similarly; you can cash out your in-game stablecoins to bitcoin or litecoin by selling your coins to a node operator.
Prior to Coinbase integration, node operators would need to notice whenever a user has bought or sold coins on their node, and would then need to manually buy or sell bitcoins or litecoins, to avoid taking on an unintended position. A node operator who did not immediately buy or sell via an exchange would be at risk of loss due to exchange rate fluctuations. This step has now been automated and node operators can automatically process player deposits and withdrawals without worrying about exchange rate fluctuations or manually placing buy/sell orders.
These features mean that it’s now easy for players to make deposits and withdrawals using BTC/LTC via nodes such as https://poly.cash where we’re using this tech for eSports betting games.
