Introducing the first MimbleWimble Stablecoin

In late 2017, Dr. Sterling DeHaan began research in to an alternative approach to blockchain design. He was not the only person to research this new technology, code-named MimbleWimble, but he was the first to introduce a scheme that would allow for the creation of a stable crypto-asset to exist utilizing MimbleWimble technology.

MimbleWimble, in summary, allows the exchange of value to take place in public, while keeping key numerical values a secret through the use of blinding. Simply put, blinding means that the true value is multiplied by another secret value, and only the product is shared. As a result the public can never uncover the original values. However, due to the design of MW, any user running trivial MW compatible software can validate that the user has not created new funds, not attempted to send negative values.

So far, the MimbleWimble ecosystem has produced several altcoins with their own markets and speculative value. What Dr. DeHaan set out to do however, was create a medium of exchange that would not suffer wild speculation in price. Instead, we aim to create a payments solution that is private, scalable, and specifically non-speculative.

While many coins keep their value stable through redemption services at a single centralized source, Dr. DeHaan wanted to do something different. In 2018 he published the first draft of what would later become the basis of the system we are currently creating. The document, entitled “Endowment Valuation of Cryptoassets and Prospect Behavior Dynamics” explained that a speculative or redeemable coin could fluctuate in value due to human emotion. This problem is visible in many current stablecoins today. However, in his essay Dr. DeHaan proposes an alternative solution to price stability without speculation known in Econometrics circles (the discipline of applying statistical methods to economic data) as Recursive Contracts. By utilizing a recursive Lagrangian to model economic constraints, we can provably demonstrate an objective such as price stability is possible using a limited, linear set of counter-priced assets. In our model, we choose 4 counter-priced assets with transmission constraints to fulfill the Bellman equation.

V(x) = max[alpha>T(x)] {F(x,a) + V(T(x, a)}
(V being the value of the target crypto-assets $1 USD value)

Can be simplified to:

V(x) = max[alpha>T(x)] {F(a) + V(T(a)}

F(a) simply needs to be a market-dependent value, and V(o) will be calculated based on the target stablecoin price of $1 USD. As a result the third asset represented by x can provide price stability, independent on the value of the market-traded asset, based on BTC/USD trade values. This is valuable because it can enforce the value of the stable asset through supply and demand with a provable model. We use the following for asset counter-pricing:

I. Sterling Stable USD (SUS)
The target stable coin, with a transaction model based on MW, operating on a target objective of $1 USD.

II. Grin (GRIN)
MimbleWimble-based Grin utilizes an interactive transaction building model to deliver blinded values between P2P crypto-currency users. The value of Grin is determined by speculative market actors trading (primarily) Grin coins for Bitcoin.

III. Wimble (WIL)
Wimble is MimbleWimble compatible coin created by our team to act as a counter-asset to GRIN, useful for balancing market demand for SUS and GRIN to optimize for the objective price of $1 SUS.

IV. Bitcoin (BTC)
Bitcoin having the highest liquduity provides the USD anchor for the other three coins. We could simply achieve stability utiliziing market value via other coins such as existing Tether coins, but as long as Bitcoin maintains the top liquidity, it remains the ideal source for valuation of assets.

Next Steps:

We are looking for application development expertise to assist in the final stages of launching our proof of concept. While we could theoretically launch today, it would be ideal to have as much initial WIL liquidity as possible to prevent slippage leading to incorrect pricing, or potentially causing flash crashes of Grin on existing exchanges.

Our alpha release is available now for select developers. Please join our Telegram at and message @smdehaan for details on how to participate as a developer or early adopter.

More details at Bitcointalk:

it’s Mimblewimble (no capital W), as per the spelling in the original paper introducing the protocol

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Strange to see no mention of the MW-based Gotts [1] stablecoin.


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Grin is perfectly pegged to $1 at the moment, I don’t see the demand (:smile:) …

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Grin being relatively stable makes life easier, but those inevitable and unpredictable swings are enough to scare off most sellers of online goods.

I don’t know what your game is, but this announcement seems like total bullshit. AFAICT, there is no Dr. Sterling DeHaan and there’s never been an “Endowment Valuation of Cryptoassets and Prospect Behavior Dynamics” paper published.

I sent a private message to the OP, with no reply. Strange at best.

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