BitMEX Co-founder Arthur Hayes Proposes Bitcoin-backed Stablecoin

• Arthur thinks the crypto community can build a USD equivalent without using the USD.
• NakaDollar would first include establishing a blockchain-based DAO.

NakaDollar (NUSD) is a proposed new stablecoin backed by bitcoin (BTC) and bitcoin derivatives suggested by Arthur Hayes, co-founder of cryptocurrency derivative trading platform BitMEX.

Hayes said in a blog post that the creation of NUSD would be different from the creation of other stablecoins like Tether USD (USDT), USD Coin (USDC), and Binance USD (BUSD) since it would not use the services of the conventional banking system.

According to the co-founder of BitMEX, establishing the NakaDollar would first include establishing a blockchain-based, decentralized autonomous organization (DAO).

Removing USD Out of the Frame

Distributed autonomous organization (DAO) NAKA tokens would be issued and distributed in return for facilitating the movement of funds within the DeFi ecosystem. Tokens of NAKA and NUSD would be ERC-20 tokens that exist on the Ethereum network.

Hayes stated:

“This would help both speculators and hedgers. It would become a positive flywheel that would not only benefit the member exchanges, but also DeFi users and anyone else who needs a USD token that can be moved 24/7 with a low fee.”

Centralized crypto derivative exchanges that offer liquid inverse perpetual swaps will back NUSD instead of fiat entities for tokenization. Voting rights for operational decisions and the division of net interest Earnings among member exchanges would be granted to holders of NAKA tokens.

As an additional point, Hayes mentioned the tense interplay between the crypto industry and conventional banks in light of Silvergate’s demise.

BitMEX’s co-founder thinks the crypto community can build a USD equivalent without using the USD stored in banks or stablecoins by leveraging the link between NUSD, BTC, and the inverse perpetual swaps.