Beam Weekly Update

Share this post
Beam 2022 Week #11 - For Your Eyes Only
beamprivacy.substack.com

Beam 2022 Week #11 - For Your Eyes Only

Covering March 7th - March 13th 2022

Mar 14
Comment
Share

Download Beam Android Wallet | iOS Wallet | Desktop Wallet | Web Wallet

Beam News

Beam continues to push forward with developments on the Confidential DeFi Ecosystem, the need for which has grows greater by the day. One such need comes in the form of Stablecoins. These have seen huge growth in the crypto space over the past years, however, there seems to be a key ingredient missing. Privacy.

As has been mentioned, this will no doubt be a wicked addition to the Beam lineup, and for this week, we will take a look at a few different types of Stablecoins.

Stablecoins

As the markets for stablecoins grow, so too do the types and iterations of them. Let us dive in and check out a few types of stablecoins, and how feasible they are for Beam.

Fiat Backed Stablecoins

First up, are the ‘fiat backed’ stablecoins. As the name suggests these are (at least in large part) backed by the underlying fiat currency, with most cases being the US Dollar. For now, these represent the biggest of the stablecoins in terms of marketcap, with $USDT being the front runner, followed closely by $USDC. As the backing is fiat currency or similar, this requires the stablecoin issuer to keep custody of the underlying treasury that backs the coins issued. This creates both regulatory issues for the issuers, and a centralisation that leads to users needing to trust said issuers. There are many cases of both $USDT, and $USDC having been frozen, for the likes of sanctions and hacks.

It is possible for Fiat Backed stablecoins to run on the Beam blockchain in a couple of different ways. The stablecoins can be issued directly as a Confidential Asset (or in contract form). Another way is for users to bridge the assets over from other networks.

Crypto Backed Stablecoins

Another type of stablecoin that has come to prominence namely through Maker DAO, is that of Crypto Backed Stablecoins. Given the volatility of crypto markets, at first glance this may seem a little counter intuitive. This however is circumvented with the method of issuance that crypto backed stablecoins utilise. Rather than a centralised issuer, any one can issue crypto backed stablecoins. A user simply provides enough crypto as collateral (with a decent buffer for volatility) to issue the coin. This creates a debt position that on issuance is over collateralised. To get back your collateral you must return the issued stablecoin. If the collateral falls below a certain threshold, your position will be liquidated and the debt repaid in order to keep the overall system fully backed.

One caveat of DAI is that of the crypto it is backed by. After the launch of multi collateral DAI, a large part of the collateral has become $USDC. This creates some questions as to its feasibility, given the centralised nature and censorship that potentially comes with it.

Various designs of Crypto Backed Stablecoins have come to fruition, all using tweaked versions of the collateralized debt positions. With the last hard fork Beam enabled Shaders which are essentially smart contracts. These smart contracts allow Crypto Backed Stablecoins to run on top of the Beam blockchain, using $BEAM or Confidential Assets as the underlying collateral.

Algorithmic Stablecoins

Depending on your stance, Algorithmic Stablecoins are illustrious, illusive, or both. These stablecoins don’t rely on collateral, which presents the potential for them to be far more capital efficient than their asset backed counterparts. Algo stablecoins have various designs (or attempts thereof), with a common theme being to utilise a 'decentralised central bank’ for issuance. These rely heavily on code in order to execute the issuance and have been met with various degrees of success and failure. New examples of Algorithmic Stablecoins are rapidly emerging, and they are at the bleeding edge of all stablecoins. Given the scalability they offer, this is a space well worth watching!

As with the Crypto Backed Stablecoins, the addition of Beam Shaders allows for Algo Stablecoins to run on the Beam blockchain. Despite no current standout designs it will be exiting to see some unleashed and experimented with on top of Beam.

Privacy

One thing prevalent with the above stablecoins is the lack of privacy. This is where Beam shines! Just like any crypto, addresses can be ‘black listed’, taking away any perceived fungibility. Privacy is essential for us all to transact in a free and uninhibited manner. Stablecoins issued on top of Beam will allow us all to do so without taking on the market volatilities that we find in crypto today. An exciting addition to the Beam lineup!

Community!

Know Your Rights!

Twitter avatar for @beamprivacyBeamPrivacy @beamprivacy
The right to #privacy is a #fundamental #human #right. Beam advocates for the right to privacy by implementing #privacy #protocols such as Mimblewimble, Lelantus & Dandelion hiding all transaction metadata, whilst enabling a confidential private-by-default blockchain ecosystem.
Image

March 10th 2022

43 Retweets100 Likes

Web3 + Privacy

Twitter avatar for @thebeambotsBeamBots @thebeambots
We are all for #web3. But web3 with no #privacy might be even worst than leaving the data/reputation/ownership at the hands of centralized tech companies. #pWeb3 #BEAM #BEAMX @beamprivacy

March 14th 2022

2 Retweets7 Likes

Beam NFT!

Twitter avatar for @beamnftartBeamNFT.art⟁ - NFT Marketplace on BEAM @beamnftart
We announced the winners of Beam #NFT Competition. Check your rewards on the balance.
BeamNFT Competition Winners Announced!The BeamNFT Competition, hosted by the BeamNFT.art Marketplace recently came to a close. Today we proudly announce the winners!beamnft.medium.com

March 10th 2022

2 Retweets9 Likes

The Only Option!

Twitter avatar for @beam_africaBeam Africa @beam_africa
Privacy should not be an option. It is a fundamental human right. #PrivacyMatters #Beam #mondaythoughts @beamprivacy
Image

March 14th 2022

4 Retweets10 Likes

That is all for this week, but be sure to sign up, and stay tuned for all things Beam.

CommentComment
ShareShare

Create your profile

0 subscriptions will be displayed on your profile (edit)

Skip for now

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.

TopNewCommunity

No posts

Ready for more?

© 2022 The Beam Foundation
Privacy ∙ Terms ∙ Collection notice
Publish on Substack Get the app
Substack is the home for great writing