ELECTRONIC DOLLARS
Co-Architect and CTO
Electronic Dollars, eUSD, are the first stablecoin introduced to the MobileCoin blockchain. In building the ability to add new assets, we also introduce Confidential Tokens.
Important Notions
Privacy and Security: We outline the mechanism for fully-collateralized stablecoins, such as eUSD, with strong privacy guarantees. Like traditional MOB transactions, eUSD allows private transactions where sender, recipient, and amounts are concealed, while minting and burning are auditable.
Multiple Tokens Support: We present the ability to create multiple token types, such as stablecoins, directly on MobileCoin’s layer-one blockchain. This expands MobileCoin’s capability beyond just MOB and provides a seamless integration for users, eliminating the need for new account keys.
Stablecoins with Confidentiality: eUSD offers the first stablecoin that provides privacy features similar to those in privacy-focused cryptocurrencies. It ensures users don’t have to choose between confidentiality and the stability of a pegged asset.
Auditability and Transparency: Although transactions are private, the process of minting and burning stablecoins is transparent, ensuring that the total supply is auditable, addressing concerns of runaway minting or supply manipulation.
Cross-Chain Integration: We introduce a bridge mechanism to wrap and unwrap eUSD between Ethereum and MobileCoin, utilizing Gnosis Safe for secure collateral management. This enables fully collateralized stablecoins, backed by assets from other blockchains, to be transacted confidentially within the MobileCoin ecosystem.
Impact
Privacy for Stablecoins: The introduction of a privacy-centric stablecoin like eUSD is a significant contribution, enabling confidential transactions without compromising on stability or security.
Usability and Accessibility: eUSD improves user experience by supporting private stablecoin transactions on mobile devices, making it ideal for everyday payments.
Enhanced Security: The focus on secure minting and burning operations ensures trust and compliance, making the system viable for real-world financial applications.
By combining privacy with the security and stability of stablecoins, the eUSD project provides an innovative solution in the decentralized finance space, addressing key challenges in confidentiality, auditability, and scalability.
Read the Whitepaper on eUSD here
