Even if the authorities are increasing their scrutiny of stablecoins, the community’s persistent interest in stablecoins that are not related to the US dollar is illustrated by Hayes’ idea for the NakaDollar. NakaDollar would be a stablecoin that would not be tied to the dollar. The proposed stablecoin differs from major reserve-backed stablecoins such as Tether (USDT) and USD Coin by relying on derivatives markets that offer liquid inverse perpetual swaps instead of US dollar reserves as a backstop mechanism. This is in contrast to major reserve-backed stablecoins like Tether (USDT) and USD Coin. This is in stark contrast to the two large stablecoins that came after it. These types of deals are known as “liquid inverse perpetual swaps” which is a fancy term for them (USDC).

The combination of short BTC holdings and USD inverse perpetual swaps would serve as the stablecoin that Hayes has suggested using as the underlying structure. To maintain the 1:1 peg of the stablecoin to the US dollar, math-based transactions would take place between the new NakaDAO and permitted parties and derivatives exchanges. These transactions would be necessary. The viability of the proposed stablecoin would depend on its availability and liquidity in the derivatives markets to engage in reverse perpetual swap trading. This is an essential prerequisite that must be met before the introduction of the stablecoin.

As the cryptocurrency industry continues its relentless pursuit of perfection, it is virtually guaranteed that new concepts for stablecoins will emerge at some point in the near future. This could take the form of a new product or an enhancement to an existing one. However, the regulatory framework under which stablecoins operate is also going through a transition period. In light of this, it is of the utmost importance that stablecoin issuers make compliance and transparency their top priority in order to attract investors and stay in line with regulations currently in place.