Is EOSDT a synthetic asset?

by Big Swinging Dapp4 months ago • ... views

I noticed that your coin is backed by EOS (and/or BTC). In this way, it is somewhat different from dollar-based stablecoins in Ethereum. From my understanding, coins like $USDT and $USDC are actually backed by dollar reserves. What happens if the price of $EOS collapses? Sounds more like what Synthetix is doing in Ethereum.

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The Crypto Hobbit• 4 months ago

Hmm 🤔 ... I hadn't thought about it but now that you say it, I wonder about $DAI fitting that definition of synthetic. After all, the original $DAI (now $SAI ) was only backed by Ethereum.

LeeKuanJew• 4 months ago

Their website is great. I would have preferred some other name like eosUSD that is more to the point. I understand what they were trying to do but IMHO it doesn't stick.

Prof. Crypto• 4 months ago

I would say this is not a synth, it seems it works like $DAI. They do have a stability fund for the price of $EOS collapsing. However, their main issue right now is that the interest rate is quite low, compared to DeFi on Ethereum. Unless you are long and hodl-ing $EOS, then, it is a nice little tickle.

teenager getting 'tortured tickled'