Arthur Hayes, co-founder of cryptocurrency derivatives trading platform BitMEX, has proposed a new stablecoin, NakaDollar (NUSD), which will be backed by Bitcoin (BTC) and Bitcoin derivatives.
In a blog post, Hayes noted that unlike most existing stablecoins, including Tether USD (USDT), USD Coin (USDC) and Binance USD (BUSD), NUSD will be created without the services of the traditional banking system. The BitMEX co-founder explained that the first step in developing NakaDollar was to create a crypto-native decentralized autonomous organization (DAO).
The DAO will issue its governance token, NAKA, which will be distributed in exchange for providing liquidity in the decentralized finance (DeFi) ecosystem. NAKA and NUSD tokens will be ERC-20 tokens that live on the Ethereum network.
Instead of relying on fiat entities for tokenization, NUSD is powered by member-centralized cryptocurrency derivatives exchanges that list liquid reverse perpetual swaps. Holders of NAKA tokens will vote on operational matters and the distribution of Marvin's net interest among member exchanges. “We, the big fans of cryptocurrency, have the tools and organization needed to support the circulation of NakaUSD worth $1 trillion or more. If traders and exchanges accept this solution, it will lead to the failure of Bitcoin derivatives.” There has been a significant increase in liquidated contracts, creating deep liquidity," Hayes said.
In addition, Hayes also mentioned the tension between the crypto ecosystem and traditional banks, especially in the case of Silvergate's collapse.
CryptoPotato reported earlier that the crypto-friendly bank had entered voluntary liquidation due to the fallout from the collapse of bankrupt cryptocurrency exchange FTX. The event could spell trouble for existing stablecoins, which are closely tied to the fiat banking system.
The BitMEX co-founder believes that the relationship between NUSD, BTC and reverse perpetual swaps will allow the crypto community to create dollar equivalents without touching dollars held by banks or stablecoins in the ecosystem. “This will help speculators and hedgers. It will be a positive flywheel not only benefiting member exchanges, but also DeFi users and anyone else who needs a USD token that can be moved 24/7 with low fees people," he added.
