BitMEX founder Arthur Hayes: A centralized Bitcoin-backed stablecoin NUSD should be created

ChainCatcher news, BitMEX founder Arthur Hayes published an article expressing his views on stablecoins in the crypto industry. He argues that over-collateralized stablecoins like MakerDAO and algorithmic stablecoins like TerraUSD are fundamentally unnecessary. The former is inefficient, while the latter poses significant risks. The real reason for the existence of stablecoins, according to him, is to allow traders to transact between fiat currencies and cryptocurrencies, making the centralization of stablecoins irrelevant.

Furthermore, Arthur believes that having a large amount of dollars controlled by institutions that must immediately settle their debts to fulfill commitments to clients poses too great a risk for the U.S. financial system. Therefore, although USDT, USDC, and BUSD may continue to exist, their deposit base will have an overall growth limit, which is detrimental to the further expansion of liquidity in the crypto market.

Subsequently, Arthur proposed the establishment of a Bitcoin-backed stablecoin called NUSD (The Satoshi Nakamoto Dollar). NUSD consists of the value of Bitcoin and a "short position in a reverse perpetual swap agreement between Bitcoin and USD." This structure allows for the stability of its value through the derivatives market. Additionally, a NakaDAO needs to be established, with centralized exchanges providing a trading venue for the perpetual swap agreements to ensure the normal operation of NUSD. (source link)