A BCH-backed stablecoin would be so much better than the trusted UDST/USDH model

A BCH backed stablecoin would be easily auditable by anyone as BCH is a public ledger. It would be symbiotic with BCH: To issue more stablecoins you'd need to lock up more Bitcoin Cash, this is contrary to the more parasitic nature of trusted stablecoins.

How I envision it would work is with the Anyhedge protocol & PMv3. A contract would allow users to send BCH to it an issue tokens in return. The contract then would hedge the amount and a service would keep renewing the contract at expiration or liquidation so the total value in the contract is stable in USD. The user would be able to send back his BCH-backed stablecoins and return the equialent amount in value in BCH (possibly minus contract/service fees).

Stablecoins have real utility but the fact that it's fully trusted & and siphons value away from the underlying crypto.

BCH backed stablecoins would be a paradigm shift- I can't wait for them to be possible.