"SafeNetCoin" maybe have equal exchange to euro? (or dollar)

Could the “SafeNetCoin” have 1 euro or 1 dollar price?

then it could vary in puts only

so e.g. if a put costs 0.0001 then 1 safenetcoin would cost 1 euro/dollar and buy you 10000 puts?

would it be good for ease of use?

Yes, that is how it was designed to work. The network adjusts the put/SNT price based on a capacity measure. Eg. SAFE/SNT rises to $600 → a flood of capacity is added and the put/SAFE ratio keeps falling.


i argue of keeping the “SafeNetCoin” always equal to euro and changing the PUTS you get for that.

so in my head there is no “SafeNetCoin” with 2 euro or 600 euro in your example

Apart from turning the token into a financial instrument being presented by the company there is the issue that there is no way to know how many PUTs a euro will buy.

What if you buy today and go to do Puts tomorrow. You bought when it was 8000 Puts, but today its 5000 Puts or even 7000 Puts. Its unreliable and we are back to the same problem it was to fix.

If you say the coin is coloured with a set number of Puts at time of purchase, then its gamed, people selling 5000 puts but claiming its 12000 Puts and too late after they trade.

You would be better off having some system were people can estimate how much safe token is needed to get X Puts and then they buy those tokens

1 Like

so you say that 1 SNT should have a stable amount of PUTs? how can this be?

how will the network be agile? isnt the payment SNT for x PUTs? it is SNT in euro price agnostic!

I have always struggled with understanding how the 2 variables would work together. If i spend EUR 1.00 to buy 1 SNT with 2 PUTs per SNT, or if i spend EUR 1.00 to buy 2 SNT with 1 PUT per SNT, the result is the same but the SNT price has halved,

1 Like

If you set SN to fixed peg example Euro then you lock the market to never be able to exceed 45 billion Euro at any given time for all of the Safe-networks future, because the supply is limited.

If you wan’t to lock something to example Euro then you need to have a variable supply to allow for growing economy, beeing able to print money like banks or Tether.

Either you have variable price like example Bitcoin or you have variable supply like banks/Tether.

1 Like

Decentralized synthetic stable coins are already available in crypto space. They wokr with oraculus for price discovery from central exchanges and allow to convert native token into stable coin and back by burning native coin and creating stable coin according to oracle price. This is very interesting concept. And if safenetwork introduces tokens in addition to SNT, we could have such stable coins here.

Those are just random words to me, that sounds cool but could mean anything, you need to explain how the system works. Initial thought is that it scares me because it makes them sound like they are some “magic stable coin solution” and almost nothing in economics is magical and unknown. Smart men that knows logic and maths have figured out how most of economics works and little new seems to be discovered after the 70’s.

But also, I think what you are talking about is a different question that should have it’s own topic.

No it should not. If it did then the network would not have a way to reward according to its need.

The fiat price of a token is set by what people are willing to pay. The network cares less about this. Remember the token is for the network to operate, not for money making and when you forget this principle then it becomes confusing.


check synthetix.io or Haven protocol, both are using chainlink oraculus. And oraculus is just a decentralized voting on what a price of someting is on centralized exchanges. So chainlink with oraculus handles exchange rate. It can be realtime, moving average, etc… Since then, you can add some logic to it. Like mint a stable coin with nativ token, by destroying native token and creating stable coin in that exchange rate provided by oraculus.(This is like haven works). Or you can lock native token + some collateral and mint stable coin and dynamically adjust collateral when price changes. And you can earn as a reward some fees provided by network for bakcing that stable coin.
Of course each of this systems is fragile in some way.

Yes they are, and yes thy will fail over long run. The question is, aren’t they more trusted than Tether or other central backed stablecoins? Aren’t they the only option how to bring stablecoins once the government closes Tether like institutions?

As you said, nothing new in theory, but likely new in practice. My aproach to crypto or any technology is, it will die very soon, but lets find out if it is not worth playing with while it lasts. Madof was running ponzi for decades, even very broken economic system need some time to die. FIAT itself is broken and it lasts way longer than sane person would expect.


Yes, I just wanted to point out, there could be a solution for stable coins as the author of this thred wished.

1 Like

To clarify, the network doesn’t care at all about this, and has no native way of knowing the SNT/fiat price. The feedback loops are completely disconnected. The network sees limited capacity, increase SNT price of puts. On the outside, farmers see ‘puts are more expensive than my costs, add capacity’. The network then sees ‘excess capacity, make puts cheaper’


I say it as the humans are the connection.

As you say, higher price and humans want to become farmers, lower price and humans start leaving farming. And more farmers reduces rewards per GET and visa versa.