Tomonori Kanno, Kensuke Ito, Yushi Yoshimura, Kyohei Shibano
arXiv 31 Aug 2026 · cs.CE
arXiv:2608.30225 · PDF · Extracted main text
Stablecoins, typically pegged to fiat currencies, cannot achieve true stability because they inherit fluctuations in the underlying unit of account. To overcome this limitation, we introduce a stablecoin pegged to the Maximum Likelihood Value (MLV), a newly defined unit of account derived as the most probable configuration of latent real-value movements that explains observed nominal-value (price) changes. Grounded in inferential statistics and modern portfolio theory, MLV represents the most stable unit of account, as it enforces a zero real return on the minimum-variance portfolio. Empirical results confirm the operational viability of an MLV-pegged stablecoin: MLV can be computed in real time from 500 asset price series and improves annualized returns and Sharpe ratios while substantially reducing turnover in portfolio optimization.
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The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.
| Reference | Intensity | Mentions | Sections | Main text | |
|---|---|---|---|---|---|
| 1 | Irving Fisher (1913) A compensated dollar | 0.644 | 2 | 2 | 100% |
| 2 | Nikolai V Hovanov, James W Kolari, and Mikhail V Sokolov (2004) Computing currency invariant indices with an application to minimum variance currency baskets | 0.644 | 2 | 2 | 100% |
| 3 | David E Tyler (1987) A distribution-free M-estimator of multivariate scatter | 0.511 | 2 | 2 | 50% |
| 4 | Lok Sang Ho (2018) In search of a unit of stable global purchasing power | 0.511 | 2 | 1 | 100% |
| 5 | Michael Adler and Nahum Biger (1975) The assessment of inflation and portfolio selection | 0.405 | 1 | 1 | 100% |
| 6 | Michael Adler and Bernard Dumas (1983) International portfolio choice and corporation finance: A synthesis | 0.405 | 1 | 1 | 100% |
| 7 | Nader Al-Naji, Josh Chen, and Lawrence Diao (2017) Basis: a price-stable cryptocurrency with an algorithmic central bank | 0.405 | 1 | 1 | 100% |
| 8 | Lennart Ante, Ingo Fiedler, Jan Marius Willruth, and Fred Steinmetz (2023) A systematic literature review of empirical research on stablecoins | 0.405 | 1 | 1 | 100% |
| 9 | The Libra Association (2019) Libra White Paper : The Libra Association : Free Download, Borrow, and Streaming : Internet Archive –- archive.org | 0.405 | 1 | 1 | 100% |
| 10 | DW Arner, R Auer, and J Frost (2020) Stablecoins: risks, potential and regulation (BIS Working Papers No. 905) | 0.405 | 1 | 1 | 100% |
Showing the top 10 of 52 scored citations.