Our initial architecture for the stablecoin was a Synthetix fork. Instead of SNX as collateral, we would use our basket of onchain and offchain assets. However the pegging mechanism was the same as Synthetix.
This part has since been rethought and we are swapping out the Synthetix fork in favor of UMA.
There are several reasons for this. The first is reduced work on our part. Instead of building and maintaining the core smart contracts, we can focus on purely the UI, UX and focus on getting distribution. We get to piggyback on battle tested code. Just this part alone is enough of a reason to go down this path. It accelerates our development time significantly and allows us to cut almost 4 to 6 months of development time.
Beyond this, there are several security related reasons to go down this path that make this approach a no brainer. In the recent past there have been a range of rug pulls and hacks