Is it possible to create a stable coin pegged to a price intex?

The title tells it all. For example to create a stable coin that is pegged to a real estate price index.

Is it enough if an oracle supplies the relevant data? Does it make any sense?


Depends on the type of stable coin.

If it is like Tether, which is (supposedly) backed by real USD, your real-estate-pegged stable coin would have to be backed by real real estate. If you could get a jurisdiction to enforce this claim to a fraction of real estate property by courts and police, you would have reinvented something like real estate funds.

If it is like Djed, yes, you would need an oracle, which is not trivial for, e.g., ADA/USD, but even more complicated for ADA/fraction of an average house.

Whose data do you trust? Some part of the US administration? Some cryptobro claiming to be more trustworthy than the US government? Whom do you trust to put that data in an oracle?

For the time being, there will be an implicit dependency on the ADA/USD exchange rate in there, since virtually nobody trades houses in ADA.

Does it make sense? For real estate, maybe not so much? Their prices vary a lot up as well as down. You could never be sure what amount of other goods you could get for this “stable” coin at any given point in time.

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No, I was thinking about Djed.

Of course this would need some planning, but from the publicly available market data I assume it would be possible to assemble such index. Probably it would be the issuer’s responsibility.

If I would start saving for a house it would. Also if I would want to lend some money to someone with the intent to buy real estate from the return and interest it would, exactly for the reason that the prices vary.

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