The Stabilize Protocol is introducing a new way for stablecoin depositors to store their coins. By utilizing the Tornado protocol, users can benefit from private transactions, meaning transactions that disconnect the sender address from the receiver address. When a user withdraws from a Stabilize account, observers would be unable to determine what his/her balance would be inside the account.
This allows depositors to benefit from something they normally get in the real world, private balances. In the real world, when you give someone money, it is not possible for that person to easily determine your remaining balance and track all your transactions, future and past. Unfortunately, with most cryptocurrencies including Ethereum, this is something that can easily be done. This can compromise your privacy and safety and make you a potential target of scammers, hackers and worse.
With Stabilize private accounts, depositors can get one step closer to the real world. They deposit into the account with their deposit note only known to them, then at a later time, can use the note to redeem the deposit amount to another address of their choosing, including receiving ETH amount of their choosing to pay for future transactions. When observers see the withdrawal, they can see that it came from Stabilize accounts but will be unable to determine who the initial depositor was for that withdrawal, thus protecting their safety and privacy.
This is the first and only DeFi yield farming application that builds upon what the Tornado team has designed to help bring more security to stablecoin depositors.
How to use it:
To use, simply unlock the account you want to use, either DAI, USDT, USDC. Then, select the amount you want to deposit, either 100 or 1000 stablecoins at a time. You can only deposit these amounts as they become part of an anonymity set. You then generate the note. Each deposit requires a different note and the note is what you will need to use to withdraw. Save it securely like you would a private key and do not share it with any other person including our team. Finally, deposit your stablecoins into the accounts.
When you are ready to withdraw, you enter your saved note into withdraw field and follow the prompts to withdraw. You enter the recipient address and any additional ETH you would like to receive upon withdraw. You can also tip extra to accelerate the time it takes to fulfill your withdraw request.
When you press “Request Withdraw”, a zkSnark proof is created in your browser. This proof and its accessory details are stored on a list of withdraw requests. Anyone can see this list and submit a transaction to the Ethereum blockchain with your proof to earn part of the fee specified in your withdrawal request. In that same transaction, the remaining amount goes to the recipient you specified with the ETH amount requested.
How does this benefit Stabilize?
As mentioned earlier, the Stabilize protocol is a platform to help stablecoins keep their pegs. We can even do this with private accounts. The withdrawal fee depends on the price of the underlying stablecoin. Essentially, the higher the price, the lower the fee and vice-versa. This is done to encourage withdrawing and selling of stablecoins that are too plentiful to bring them back down to their peg. Part of this withdrawal fee goes directly into the Stabilize Community Treasury.
Start using and learn more:
Visit the website to get started using the Stabilize protocol including private accounts and follow us on Twitter and join the community on Telegram