PON - Peg or Not?

Title of your idea
PON - Peg or Not?

Summary Description
Stables are supposed to be stable, until they are not.
PON is a set of tokens that let you trade the peg strength of any stable coin (collateralized, algorithmic…).
PON tokens have the exact value that is missing for the token to get the $1 peg.

As an example, should the $DAI be worth $0,95, the PON-DAI would be worth 0,05.
It’s the perfect cover when you want a 100% stable investment.
Buy a stable coin + its corresponding PON and you will be covered with at least $1 tokens.

Which metric will your synth track?
Every PON token will track the difference between $1 and the current price of the stable coin.

How will you get data for your metric
Various oracles offer this service, like Chainlink.
Not hard, accessible, resistant to censure and corruption…

What collateral would you use for this synthetic
As we target stable coin users, any stable coin should be fine!

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Sharp idea. Current stable coins are vulnerable.

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Excellent idea. What happens when the stablecoin trades above 1 USD?

It’s capped so the synht is worth 0.
No one will complain earning more money for they stable :wink:

But I imagine, if some needs it, a iPON that does the opposit (covers you when the price is higher than 1$)

Simple and useful, this is the missing link of the ecosystem.

Stable or not stable… Something lot of people speak about.
I guess it’s something that could get some traction!

Why didn’t you think of it before? The simplest and yet most effective solution

Definitely an interesting concept. Looking forward to see how it is implemented and get a look at it.

1 Like