(Brainstorm) Create an elastic coin ecosystem with token as collateral

I have an idea to use a part of the treasury to develop an ecosystem of elastic coins with a token used as collateral. I’m not a developer and I don’t know if this idea is possible. But from what I’ve been reading Andre Crouje wants to create something similar.

Basically a token is deposited, for example ETH, and then it creates an elastic ETH that we will just call eth-e$ as an example. This eth-e$ is rebased based on its price so that the price of 1.00 dollar is maintained at each rebase. What’s the point of creating this? To be honest it would be an experiment, but I think it is much easier to say that a coke costs 5 ETH-e$ for example than having to keep converting to ETH, as example, if ETH value is 350, a coke would cost 0.0142857142857143ETH, I think we can agree that the first example using ETH-e is much simpler to the user than converting to ETH. This ecosystem could have several tokens like eth-e$, wBTC-e$, renBTC-e$, YFI-e$ and several others as the community votes and if it has an Oracle to make it executable.

What would YAM gain from this? A fee would be charged, for example 0.3%, every time someone uses mint/swap function that would be sent to the treasury. So for example if someone turns 1BTC into BTC-e$, 0.003 BTC would be sent to the treasury and 0.977 would be minted to BTC-e$, if BTC value is 10500 it would give around 10468.50 BTC-e. Same fee would be required if you took the opposite path BTC-e$ to BTC.

With this we would be building a system in which people can be exposed to the growth of a Token but with a much simpler and easier to use pricing system.

In the future we could increase this ecosystem with Exchange, Lending, Store and other DeFi products.

What do you guys think about it?

PS: LPs Impermanent Loss – Needs further studies but I think there is a way to reduce impermanent loss with this as the price stays the same, just need to work on the supply side.

PS2: I’m a busy person IRL. If community is in favor of this idea, we need volunteers or core team to lead on further proposes and development of this idea.

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So, if I’m understanding this correctly, each 1$ corresponds to 1$ worth of ETH. There is no lending/borrowing going on? There’s no stability? If so, I don’t see why it couldn’t just be done in a UI. It could be useful for some people, particularly if ETH was ever used as a currency, but I don’t think it is something we should look at right now.