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Crypto backed by crypto: Dai seeks to change 'stablecoin' game
Some are backed by dollars. Others by gold. But this “stablecoin” isn’t tied to any major asset - it’s backed by another cryptocurrency. Stablecoins, such as Facebook’s (FB.O) Libra, are a new breed of cryptocurrencies that aim to escape the wild price swings that make bitcoin unworkable for commerce. They base their value on more stable underlying assets, typically traditional currencies or commodities. But Dai, in a major divergence from others, uses a volatile digital currency - ethereum - to maintain a steady value. This might appear to defy common sense, but its advocates say the way it works - with ... (full story)
