Multiple assets within one iAsset

I posted this in the Discord but I’ll post it again here for visbility.

There are futures markets for soy, pork bellies and frozen orange juice. These are three asset classes that could potentially be bundled together to form a hedge against inflation.

Create iSOY, iPORK and iORANGE.

Take these three iAssets and put them into a DEX balanced pool to earn yield. Send the LP tokens you receive into Indigo to stake. You now have a double yield interest bearing stable savings account that’s inflation proof. You’ll never bother with a low yield bank savings account ever again.

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So, does this mean that there could be a true stablecoin based on an iAsset in future?

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Yes. Indigo will likely be launching with synthethic stablecoins. In the future we’ll refine our ideas to create stablecoins that aren’t pegged to traditional currencies.

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This is blowing my mind with all the possible options we have with iAssets to address so many different markets, this could be big!

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Intresting idea !
But where do you see the benefit of a synthetic stablecoins in comparison with a native stablecoin like Djed ?
May be I dont just see it and there is a good reason why a synthetic stablecoins is good idea.

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Good point, probably defiroose can highlight some pros and cons. From a technical point of view the two (iAssets and Djed) work pretty similar like mentioned here:

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Djed is a synthetics protocol too. They just happen to have one synthetic asset, whereas Indigo will have multiple. Indigo is partnered with COTI and we’re keeping an eye on Djed’s new synthetics algorithm. If Djed proves the technology is viable we can consider using this technology within Indigo.

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Alright, then I got it wrong. Thank you for clarification. Then of course I see the benefits of a new synthetic stablecoin and I am thrilled to see the iAssets on the blockchain some day.

Thank for your response!
I really like how you and the team is interacting with the community.

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Thanks for clarifying!

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This and many other innovations, we will see in the near Future.

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Every price is measured in Fiat currencies that is why we call the coins pegged to them as stable coins. But if it is pegged to other assets like say top 10 cryptos then it can’t be called stable coin. imo

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No if it is pegged to crypto it probably can’t be called stable. But pegging it to raw materials or a basket of goods of daily consum, would fulfill the definition of stable. That’s why I mentioned Terra above.

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Great post. Need to study more about these iassets

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This area is very exciting. The possibilities around bundled synth assets are extremely vast. I am soo stoked for what this could do for the protocol and the entire financial industry.

Soo much opportunity, it’s incredible really!

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The only requirement for a token to be deemed a stablecoin is stability, i.e. low volatility. There’s no requirement for a stablecoin needing to be pegged to fiat. This just happened to be the first iteration of stablecoins. The next iteration of stablecoins will include non-fiat pegs.

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Bundled iAssets of different commodities feels kinda similar to futures backed commodity funds in stocks, wonder if some parallels can be drawn.

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Good old Wikipedia. It’s always great reading out there.

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Well yes! It can be done. It would be called an index… Similar to tradFi legacy one like S&P 500, DowJones… They do the same thing.

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Don’t get it, what do you mean?

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Good idea! A basket of assets brings greater security to investors, as their risk is diluted. Another advantage is the possibility to create asset basket categories such as: metaverse, nfts, games, data management, payments, lending, etc.

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