Stable Coin for HKD

supervisor: Dr. Yuen John

student: Lee Tsz Hin

Introduction

As the blockchain technology becomes more and more popular and people start caring about security and privacy issues nowadays,  public awareness about the utility of cryptocurrency is growing. Many people know of the existence of some reputable cryptocurrencies, like bitcoins and ether, but there is still a long way to go before cryptocurrency can be used in daily transactions. One the biggest reason is that the price of cryptocurrency is volatile and unstable. In order to deal with such volatility and enchich its use cases, one special type of cryptocurrency —  ‘StableCoin’ comes into being. This type of cryptocurrency is born to be price-stable by using some mathematical algorithms so the its market price will adhere to other existing currencies with minimal fluctuation. One example is USDT, which is a very widely-adopted USD-pegged StableCoin. As the price of USDT is equivalent to USD, many parties have started to transact using this coin as the medium and it has a great potential to replace physical currencies.

Many USD-pegged StableCoin exist in the market right now, for example, USDT, USDC, and USDJ. However, there is still no HKD-pegged StableCoin in Hong Kong. Therefore, this project aims to build one and make it useful for daily transactions. At the end of this project, an app will be delivered which can be used to transact with the HKD-pegged StableCoins, through which people can use a fully decentralized blockchain payment platform on a daily basis without any concern about the security and privacy, taking full advantage of the blockchain technology.

The aim of this project is to create a HKD-pegged stablecoin deployed to Ethereum first. And then an interface (App) will be delivered for interacting with the stablecoin so that people can use it for daily payment. There are 3 main goals this project wants to achieve.

Objective

The aim of this project is to create a HKD-pegged stablecoin deployed to Ethereum first. And then an interface (App) will be delivered for interacting with the stablecoin so that people can use it for daily payment. There are 3 main goals this project wants to achieve.

  • A fully decentralized payment method
  • Anonymous payment
  • A non-volatile cryptocurrency

At the end, users can transact with this stablecoin anonymously and all transactions would be securely recorded in the Ethereum blockchain.

Progress

DeliverableExpected finishing datestatus
Detail project plan4 Oct 2020Done
Deep research on other existing stablecoin
Design of the algorithm to control the price of stablecoin
Oct – Nov 2020In progress
Prototype of a smart contract
Deploy a workable MVP stablecoin to a Testnet
Nov 2020 – Jan 2021Not yet start