Stablecoin - News, Opinion & Analysis

Stablecoin

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A stablecoin is a digital token that is pegged to a certain value, usually in a 1:1 ratio with a fiat currency like the US dollar. For example, the USD Coin (USDC) launched by Coinbase is backed by US Dollars in a 1:1 ratio. Most stablecoins in reality deviate from the $1 position ever so slightly, 

Most stablecoins are pegged to a fiat currency, with the US Dollar being a popular choice. However, some stablecoin ventures distinguish themselves by backing their stablecoins with other assets. 

An example of this kind of stablecoin is the well known MakerDAO ecosystem, which is a stablecoin ecosystem that consists of two tokens: the stablecoin DAI and the governance/utility token MKR. The stablecoins are backed by Collateralized Debt Positions which demand Ether as collateral. There is a complex mechanism in place to ensure that the token does not deviate from the $1 value.

Stablecoins have been ascending in popularity in discussion in 2019. This is largely because there is some consensus in the idea that stablecoins are effective in combating the volatility of the market. Since the value of these tokens remain stable, investors who use stablecoins do not have to worry as much about bear markets, and can use these tokens to make investments during these bear markets to gain profit.

As most stablecoins are pegged to fiat currency, there has been scrutiny on the finances of stablecoin issuers, who must confirm that they possess the reserves to back the total value of stablecoins. This increased scrutiny has led to calls for more audits and better transparency.


EMPTY SET DOLLAR (ESD)

11 hours ago 1 minute read 1 comment VillainousCrypto

ESD: Decentralized Stablecoin. Stablecoins have been a great way to hedge your money during the event of corrections & are designed to hold the value of 1.00. Im here to tell you about ESD and how it’s a great way to continue making profits during a...

Stablecoins : Stable Your Wallet in Bad Days

17 hours ago 1 minute read 0 comments Jirasak

In some bad days when almost coins and tokens hit the severe red graph. Have you ever recognized there were some in your exchange board not falling into the red as others but appeared in green ? Yes, some tokens are moving in the opposite direction t...

Facebook’s Libra May Be Released In January 2021

18 hours ago 1 minute read 0 comments CryptoBrowser

The Stablecoin Project Must First Receive The Much-Needed FINMA Regulatory Approval According to a report from Financial Times, Libra`s regulatory issues may be resolved and it may receive clearance for the launch of Facebook`s first US dollar-backe...

Ampleforth is not a stablecoin

26 Nov 2020 1 minute read 0 comments Michael Braga

   Although at first look, AMPL tokens look stablecoin, they really aren't. Their value is variable, which allows them to be included in the group of assets with increased risk. Therefore, Ampleforth tokens are more similar in structure to Bitcoin th...

Bridge Mutual is Decentralized Insurance For Smart Contracts, Stablecoins, Exchanges and More

26 Nov 2020 4 minute read 0 comments JaksHitam

A stablecoin is another class of cryptographic types of cash that tries to offer worth quality and are supported by a hold asset. Stablecoins have gotten balance as they try to bring to the table the best of the two universes the second taking care o...

Ampleforth (AMPL) Integrated for Tipping on Publish0x

24 Nov 2020 7 minute read 60 comments Dan Bainbridge

You might have noticed that we have become a little DeFi obsessed here at Publish0x. Simply put, we think DeFi is where the activity is in blockchain right now. Obviously, Bitcoin is getting attention, and don’t get us wrong, we LOVE Bitcoin. But on...

How to use BUSD optimally to get the best annual profit yield

20 Nov 2020 2 minute read 4 comments Heruvim78

So, i was testing different ways to get my Binance USD to work, and increase my portfolio. In case you need any introduction to it, BUSD is a stablecoin pegged to dollar, and can be used on Binance chain. The easiest option is Flexible Staking for 1....

Stablecoins. A guide. (Fourth part)

19 Nov 2020 1 minute read 0 comments espacioreal

In this post I will try to answer some questions that I was asked these days, regarding this guide. What are the risks (financially, not security) of stable coins? Currencies like USDT that are centralized have the risk that they are manufactured wi...

How to use Stablecoin to boost your profits?

19 Nov 2020 2 minute read 0 comments Galaxie Crypto

It is well known that Stablecoin are very useful simply because they are stable which gives them different utility. You may not have realized it yet, but you can use them every day to secure and maximize your profits by spanking trading. This trick i...

Stable coins and Inflation

19 Nov 2020 2 minute read 0 comments Chadayan

Before I start I am not an economic expert. Just a curious enthusiast who is trying to figure out how things work.  Do stable coins create inflation to the fiat currency? This is the doubt I have. Do I have an answer? I don't think so. So If you are...