News for hackers. Stuff that matters.

A comment on Show HN: Burnt US Dollars.

Re:Show HN: Burnt US Dollars by pwlm on Thursday September 18, 2025 @12:46PM (#45291895)
An unusual property of this mechanism of creating a stablecoin is that the bank no longer holds the funds that back the stablecoin. There's no possibility of the bank locking up the funds of a company that issued a stablecoin.

It's the burn and mint used in Luna Classic, now in physical form.

[ Parent | on HN ]
Re:Show HN: Burnt US Dollars by grafmax on Friday September 19, 2025 @08:24AM (#45300848)
I understand the conversion from dollars to coin. What about coin to dollars? There’s a floor but no ceiling, so I don’t see how this is a real peg.
[ Parent | on HN ]
Re:Show HN: Burnt US Dollars by etskinner on Friday September 19, 2025 @08:48AM (#45301085)
They address this on the site:

>bUSD is not a stablecoin. It can never be redeemed for USD, and may trade at values other than $1 for extended periods of time.

[ Parent | on HN ]
Re:Show HN: Burnt US Dollars by scyclow on Friday September 19, 2025 @09:34AM (#45301514)
Frankly, this is better than a stablecoin since the value is locked on the blockchain forever no matter what.
[ Parent | on HN ]