Author Topic: Smartcoins on an interest/dividend paying asset?  (Read 1269 times)

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Offline Gleepower

Would it be possible (theoretically) to have a smartcoin based on(e.g its underlying asset is) an interest bearing asset? I ask because I'm quite interested in this force settlement thing - which is akin to a bank converting it's deposits to equity. If banks were equity funded, and we used smartcoins where the underlying asset are the shares in the bank we could have a very interesting banking model with no bank runs (because of this force settlement)! The capital requirements of today (e.g. 5% of your assets risk-weighted or some kind of VAR metric) would be replaced with a margin requirement.