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I am just trying to make a collateral backed stablecoin (1:1 AUD transparently backed) and am struggling to find any reasons as to why it cant be implemented using a simple ERC-20 contract?

If I offer 1:1 trade with the AUD on my website at ANY time then this should be enough to keep the token pegged to apprroximately $1 through the slight arbitrage trade acheiveable if it swings either way.

Am I missing something here? Is there any special functionality I need to implement for a stablecoin that isnt native to the ERC20 standard?

Thanks in advance!

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You are correct. A simple Erc20 that you mint, let’s say 1000 tokens, once you received a transfer of 1000 AUD would work.

It wouldn’t be a algorithmic stable coin, or even a decentralized stable coin, but it would work

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  • Awesome. Thanks for the insight!
    – freshsalmon
    Commented Nov 23, 2022 at 19:16

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