Would it be possible to have a BCH onchain contract like a PUT option, to then create a BCH backed over collateralized dollar stablecoin?

Lets over collateralize the example to make sure its safe against even a 90% crash.

1) So lets say BCH is $100

2) We make you create a dollar backed token contract with 10x collateral required, so in this case you would need to fund it with 10BCH to create $100 of USD tokens (lets call it BCHDollar).

3) The term for the contract is set to 12 months. At which point at settlement either: A) some of your collateral will be given for each BCHDollar, B) you buy some BCHDollar on the open market to close your contract out before expiry.

4) if the value of your collateral reached some threshold, maybe 2x-5x, then part of your collateral is just sent directly to BCHDollar current holders or maybe some collateral is liquidated for USDC to back the BCHDollar, the contract gets canceled and the BCHDollar is instantly redeemable for the USD or BCH.

This is all basically a very overcollateralized option contract, now what are the benefits of doing this?

Well BCH holders can have 10% of their BCH as a sort of dollar token to be used as they like, its a cool free loan (well requires your crypto to be locked up while you have it, as the price of having it).

Users can have access to a 10x collateralized USD token, that is not subject to banks or anyone, to use as they wish, its an option contract that has a $1 value built in, and can be used as money.

submitted by /u/FearlessEggplant3036
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source https://www.reddit.com/r/btc/comments/1345od0/would_it_be_possible_to_have_a_bch_onchain/