Coinbase to Launch Inflation-Proof Stablecoins

Flatcoins, or inflation-linked stablecoins, could potentially solve the major problems of both cryptocurrencies (high volatility) and fiat money (gradual depreciation). Essentially, they could serve as an ideal means of payment and value preservation, all based on blockchain, with every advantage of such technology.

The Base team stated in their proposal article that they are also open to other forms of flatcoins that could be the "golden mean" between fiat-backed stablecoins and regular cryptocurrencies. They emphasized the importance of creating such a solution in the face of banking collapse and archaic financial imperfections. 

Coinbase is also seeking feedback from teams working on their own stablecoin and flatcoin systems or focused on ways to improve existing ones' adoption. These include RAI, Ampleforth, and FPIS. Such developments exist, but have not yet been implemented.

In addition to flatcoins, the article outlines other proposals for builders in the Base ecosystem. One of them is the creation of on-chain reputation protocols. Coinbase believes that decentralized identity and reputation will play a significant role in the blockchain. The solution is expected to simultaneously reveal certain chain data while maintaining user confidentiality.

Other ideas include creating a limit order book on-chain exchange that could satisfy professional traders and institutions, as well as better tools that could eliminate vulnerabilities in the DeFi world, such as smart contract security flaws or protocol logical errors. To put it another way, the exchange is aware of security gaps in the DeFi environment and wishes to fix them, at least within the Base blockchain ecosystem.

Сheck out our dedicated article on the website to learn more.