zlacker

How does this not become a recursive / pyramid problem? I give you one USD, you lend that at interest and give me a non-interest bearing token in return. Iff this token were accepted as good as USD I could then collect tokens from others and invest those in interest bearing accounts and issue my own "stable" token.

If it seems nonsensical at the second iteration it was nonsensical at the first iteration.

>>iandan+(OP)
Chiming in as an uninvolved participant. It's not "as good as the US Dollar." It's worse in some ways, better in some ways. One man's "95% as good as the dollar for me" is another man's "much better than dollars for me."

The people providing interest bearing accounts would be on the "95% as good as the dollar for me" end.