CroCoDai: A Stablecoin for Cross-Chain Commerce

Decentralized Finance (DeFi), in which digital assets are exchanged without trusted intermediaries, has grown rapidly in value in recent years. Stablecoins , which are pegged to a non-volatile asset such as the US dollar, are a prominent feature of DeFi as they mitigate the risk associated with price fluctuations. However, existing stablecoin systems are tied to individual blockchain platforms, and trusted parties or complex protocols are needed to exchange stablecoin tokens between blockchains. Our goal is to design a practical stablecoin system for cross-chain commerce, and to do so we must overcome two main challenges. The first is to support a large and growing number of blockchains efficiently. The second is for the stablecoin to be resilient to blockchain platform failures and to price fluctuations that affect its collateral. We present CroCoDai to address these challenges. We demonstrate CroCoDai ’s efficiency by comparing the performance of a prototype implementation to related baselines, and its resilience through an empirical analysis of historical token price data.