Wish Stone, a Stablecoin within the Wish Chain Ecosystem
Some people are calling 2018 the “Year of the Stablecoin,” and it appears as though this prophesy may have come true this year. We’ve witnessed the emergence of numerous stablecoin projects, each attempting to once-and-for-all take the crown as the most reliable stablecoin in the cryptocurrency kingdom. However, we have yet to see a single stablecoin prove its worthiness in terms of price stability and usability.
The most famous stablecoin is probably Tether (USDT). Tether is a cryptocurrency with each unit backed by one U.S. dollar. This means that the organization behind Tether must hold a dollar reserve that equals to the total supply of Tether. In theory, Tether may sounds fantastic, and in many ways, it is. However, beneath the surface lie several problems, including uncertainty regards the dollar reserve held by the Tether group and the prospective crisis of a bank run, which would be a disaster for the entire cryptocurrency world. Moreover, while Tether is hedged against the market during times of market volatility, it hasn’t been adopted as a currency that is used in our lives.
Then we have other crypto-collateralized projects like MakerDAO and BitShares, but they too have failed to gain traction in the real world for a number of reasons. While this is the current situation in the stablecoin universe, let’s take a look at Wish Stone and what it has to offer.
Wish Stone, a Stablecoin for Real Life Usage
Wish Stone is a stablecoin whose purpose is to guarantee price stability and usability in Wish Chain’s ecosystem. With regards to price stability, Wish Stone has a fixed fiat value that erases our concerns for price volatility. Some of you may be asking where this value comes from, and that is a valid question. The value of Wish Stone comes from Wish Coin, a cryptocurrency that extends beyond the Wish Chain network to be connected to the outside world. Let’s assume that one Wish Stone token is fixed at a price of 1 dollar and that the market has decided that 1 Wish Coin is 5 dollars. Under these conditions, 1 Wish Coin can be converted to 5 Wish Stones, and 1 Wish Stone can be converted to 0.2 Wish Coin. If I want to cash out my Wish Stone, then I must go through Wish Coin and then sell my Wish Coin for fiat on a cryptocurrency exchange.
In this system, Wish Coin is the bridge that affords value to Wish Stone while allowing Wish Stone to maintain its fixed price. Because the private blockchain permits scalability, the stablecoin called Wish Stone can simultaneously be used as a currency for the exchange of value.
We believe Wish Stone can solve some of the problems stablecoins are battling against. Our whitepaper contains more details on Wish Stone, and we plan to release a technical paper that provides further information on the stablecoin functionality of our token. We want to keep you posted, so please follow our Medium for the latest updates on Wish Chain. Thank you.
[ For more information, please visit our website at https://wishchain.io/ ]
