The NakaDollar (NUSD), a Bitcoin stablecoin? Arthur Hayes’ new invention

Satoshi’s dollar? – Such a crazy idea. Straight out of the evil spirit ofArthur Hayesthe co-founder of the BitMEX exchange. A crypto trading platform. Arthur Hayes, who has already shared with us his predictions on the price of Bitcoin in 2023, today reveals a concept of a completely different magnitude. Decryption.

Separating crypto from the banking world, Arthur Hayes’ vision

Get rid of the banks, totally. And get rid of their regulatory power. It is in a nutshell Arthur Hayes’ goal with his new project. Because it must be recognized, our banking system is still essential to the functioning of the crypto market. To buy our precious bitcoins, we need dollars, euros. And so a bank account, a bank. Who holds our money and decides whether or not, depending on her mood for the day, she authorizes our transfer to Binance. Or any other exchange for that matter. So what can you do without?

How to completely and totally separate the crypto world from the world of traditional finance? The bridge that connects these two worlds today is stablecoins. Indexed to the value of our fiat currencies, they allow traders, more often, and investors, from time to time, to switch easily and in a flash between fiat and crypto currencies. Much more efficiently than before, when we had to go through our old bank accounts.

Despite everything, the influence of traditional finance and their regulation remains very present. It suffices to see how effectively the US regulator, represented by the SEC, can undo a stablecoinTHE BUSD, with the snap of a finger. In order to escape from their grip, what if we decide to create a stablecoin on Bitcoin? How to create a crypto worth 1 USD, but totally decoupled from banks? It is Arthur Hayes’ idea that we are going to detail.

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The NakaDollar, a stablecoin on Bitcoin

Here’s the idea: create the NakaDollar (NUSD) backed by bitcoin and the Bitcoin derivatives market. So a stablecoin. But who would be totally independent of the traditional banking system, unlike his colleagues USDT, USDC Or other BUSD. A NUSD driven by the mathematical following, and I apologize in advance:

“1 NUSD = $1 bitcoin + short 1 bitcoin/USD in reverse perpetual swap. »

Without going into details, it would therefore be a stablecoin based on bitcoin of course, but also trading bitcoin against the dollar. In fact, the dollar therefore intervenes in the loop, but in a roundabout way. And, for liquidity reasons, would still rely on centralized exchange services.

Also, the NUSD would be a ERC-20 token based on Ethereum. It would be based on a DAO (Decentralized Autonomous Organization) for community-led operation. The DAO would issue a governance token, the NAKAwhich would be distributed in exchange for providing liquidity within the DeFi ecosystem. Because for the NUSD, whose principle is based on reserves in bitcoin, to work, you need… reserves precisely. An incentive for actors to participate in the NakaDollar security mechanism.

“We who believe in crypto have the tools and organizations required to support 1 trillion+ NakaUSD in circulation. If this solution were supported by traders and exchanges, it would lead to a large growth of the derivatives market on Bitcoin, thus creating large amounts of liquidity. »

Kicking the banks out of the crypto-loop is in itself a good idea. But it is particularly complex, if not impossible, to get rid of all the intermediaries in a flash. Not even in 10 years. At present, it is difficult to wipe off the map the traditional financial system in which we have evolved for decades. Nevertheless, step by step, idea after idea, a new horizon seems to germinate towards which we are progressing. And we can rightly wonder if over there it is always these financial entities who rule the world.

The time for everyone’s interest in Bitcoin has come. And you, what are you doing to prepare for the future? Start getting acquainted with this exciting world, and don’t wait any longer for yourself create an account on Binance. You will save 10% on your trading fees by following this link (trading link).