If you want to deep dive, here is our litepaper: https://commonwealth.im/membrane/discussion/14701-membrane-the-next-step-in-evolution
For now this’ll highlight the main aspects of Membrane’s success. Decentralized stablecoins have failed to scale because scale introduces greed that erodes either censorship resistance ($DAI) or stability ($UST), CDT sprouts as a compromising solution. Fiat-backed tokens are the culprits for the lose of censorship resistance in most cases due to their ability to supercharge growth. Membrane’s model allows tokens like USDC to be used as collateral & be liquidated in the face of depegs due to insolvencies or chain blacklists from Noble USDC. This alone grants an extra layer of safety when scaling the stability at a slight cost to capital efficiency, a temporary tradeoff while decentralized collateral options continue to amass capital.
There is no decentralization without decentralized control, so Membrane being a citizen of the Cosmos, places it in a perfrect environment to perfect its sovereign governance structure. The DAO has the potential to facilitate coordination & delegation of contribution to act as a foundation for the protocol suite that keeps CDT not only robust, but increasingly adaptable as the future throws twists and turns at us. The protocol itself should trend towards autonomy where possible, while the governance structure allows efficient organization between agents to cover any weaknesses. The current structure allows non-validator governance delegates and enforces quadratic voting to encourage participation, we’d love to see you join our ranks to start branestorming!
The world runs on humans building for humans. This will be another lego in the masterpiece we call life.
