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Verus & Komodo Fintech: Onchain pegs & stablecoins

Mike's response to jl777s comments about pegs and stablecoins on-chain:

miketout04/20/2019
@jl777c is right that we don't have price feeds or pegs yet. We do support CCs, but before adding these features, I want to make sure that we really understand as much of the implications in all cases as possible for all parts of the PBaaS ecosystem, and if we do it in the Verus community, rather than someone's independent PBaaS project, that it's well considered, especially relative to the reserve currency support we will have. I'm not saying that it won't be the right thing, just that I haven't worked through the edge cases for myself mathematically yet. For example, if across the system of chains, there would be a way to generate price fluctuations and slowly earn money by arbitraging through synthetic price discrepancies, I'd consider that a leak in the value that could be exploited and would want to consider what it might motivate if/when someone figured it out. Also, if there could be some susceptibility, due to timing discrepancies on the oracle to Cornell's concern about front running, I'd want to make sure at a minimum we understand those implications. I don't yet. I do know how we plan to implement the fractional reserve currency support, and I believe it covers all of those potential concerns, even if it doesn't yet answer the stable coin question.

The pricing model we'll be adding for PBaaS fractional reserve currencies and reserve exchange to and from Verus will be done always and only ever on the fractional reserve chain. All pricing will be determined locally on that chain and will be calculated the same for all transactions in a block, enabling a fill or kill transaction to be impervious to front running, which solves a problem that I believe has yet to be solved. Since the chain will always know its reserves, as each block can change reserves through exchange protocol transactions and the mining/staking inflation, it is the oracle of its own price in Verus, and through auto-notarization, the Verus chain will defer to the reserve management (or other on-chain logic) of the fractional reserve chain. To exchange Verus to a PBaaS fractional reserve currency, Verus will first be moved under a person's control to tokenized Verus on the PBaaS chain, then, at any time, a purchase or sale transaction will convert between that PBaaS currency and Verus, according to the current supply, reserve, and reserve %, all of which can change over time. Verus will be converted back to the native form and out of control of the PBaaS chain by moving it back to the main Verus chain.
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