BitMEX founder proposes to make stablecoin NUSD backed by Bitcoin and futures

BitMEX stablecoin NakaDollar (NUSD) will be backed by Bitcoin and short BTC futures to balance risk.

BitMEX founder proposes to make stablecoin backed by Bitcoin and futures. Photo: New York Magazine

In a personal blog post, Arthur Hayes founder of crypto derivatives exchange BitMEX shared the idea of ​​a new stablecoin that will help reduce dependence on USD.

Arthur Hayes used to be a well-known figure in the crypto industry before 2021. At that time, he was known as the founder and CEO of BitMEX, the crypto derivatives exchange with the largest trading volume in the world. world when Binance Futures and FTX are not yet mature. However, at the end of 2020, Arthur Hayes was charged by the US with violating banking regulations and aiding money laundering. The CEO in early 2021 accepted to surrender to ask for leniency and paid a fine of $ 10 million, as well as being under house arrest for 6 months. After being released in early 2023, Mr. Arthur Hayes revealed that he had left the US and had no intention of returning to his homeland.

Specifically, Mr. Hayes wants to create a stablecoin called NakaDollar (NUSD), independent of any banks or institutions that are governed by the USD. Instead, the stablecoin will be backed by cryptocurrency exchanges that offer Bitcoin derivatives trading (futures).

Although still being converted to USD, each NUSD will be backed by 1 BTC and a BTC short contract. According to the BitMEX founder, this mechanism helps to protect the value of stablecoins in the event of Bitcoin volatility, as the rise in the price of Bitcoin will be balanced by short BTC contracts and vice versa. In addition, it is also an effective tool for both investors and those who want to invest in hedge funds.

Therefore, it can be seen that NUSD is a stablecoin that does not depend on USD and banks, in return will switch to Bitcoin and exchanges must be born.

Mr. Hayes even went so far as to propose the establishment of an entire DAO organization with its own governance token called NAKA to oversee operations for NUSD. Both NUSD and NAKA will be ERC-20 tokens issued on Ethereum.

It all shows that this is a prepared plan and BitMEX may soon launch this stablecoin in the near future.

Despite the demise of LUNA-UST in May 2022, the crypto industry has not given up on building a “perfect” stablecoin, with new proposals constantly emerging such as Aave’s GHO, Curve’s crvUSD. Cardano’s DJ.

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