Sirwin
Sirwin

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.


PayPal Crypto (PYUSD): Bridging the Gap Between Fiat and Digital Currencies

14 May 2024 2 minute read 2 comments Guarda Wallet

Introduction PayPal, a global leader in online payments, has launched PayPal USD (PYUSD), a stablecoin that aims to bridge the gap between fiat and digital currencies. Fully backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cas...

Ethena Labs Partners with Bybit to Integrate USDe Token, Enhancing Spot & Perpetual Crypto Trading

7 May 2024 1 minute read 0 comments Coinseek

Synthetic stablecoin startup Ethena Labs has announced a major collaboration with Bybit, a leading cryptocurrency exchange, to integrate its USDe token as a collateral asset on the platform. This integration marks a significant milestone for both Eth...

Running from the USD Like Usain Bolt

6 May 2024 2 minute read 0 comments chuxster

Hi guys, I just came across an article that wrote about Elon Musk hinting at the collapse of the U.S. Dollar due to a lack of the country's ability to pay back it's debt: https://www.cointribune.com/en/elon-musk-warns-of-the-collapse-of-the-dollar/....

USDT transactions will now be monitored

3 May 2024 2 minute read 0 comments Talha.Khalid

Tether, the issuing company of USDT, partnered with the blockchain analysis company Chainalysis in order to implement a monitoring tool for stablecoin transactions.  As Tether reports in a statement, the solution designed by Chainalysis facilitates t...

Access your Etherspot service subscription with stablecoins via Subs Protocol

1 May 2024 1 minute read 0 comments Pillar

Etherspot has integrated with Subs Protocol to offer developers the flexibility to pay for their subscription plans using stablecoins. This collaboration is all about making life easier for developers in the Web3 space. Etherspot offers an Accou...

Native USDC on Cardano? Why It May or May Not Be Necessary

1 May 2024 3 minute read 0 comments Pizzadren

Introduction There’s been tons of discussion (especially among the Cardano community) on whether a native USDC stablecoin will benefit the Cardano ecosystem. Most of the people think that it will bring mass liquidity to the Cardano ecosystem, especia...

Quick Crypto 101: Frax v3 Overview

30 Apr 2024 3 minute read 0 comments Michael @ CryptoEQ

You are reading an excerpt from our free but shortened abridged report! While still packed with incredible research and data, for just $40/month you can upgrade to our FULL library of 60+ reports (including this one) and complete industry-leading ana...

Stripe Revives Stablecoin Payment Settlement!

26 Apr 2024 1 minute read 0 comments Novasky

In past Stripe used to accept the crypto payment settlements. But then govt went totally paranoid and then things start to get regulated. And now everything under the sun is in control or in watch eye of the IRS. This would make the SEC have control...

The Depegging of Stablecoins: Why It Happens

22 Apr 2024 3 minute read 0 comments SimpleSwap

Stablecoins are like a safe harbor in the volatile Crypto World. Essentially, they're digital assets whose value is tied to a relatively stable financial instrument such as fiat currency, gold, etc. This connection makes them convenient to use and be...

Stronghold - Insights from Live AMA (16 Apr 2024) with CEO Tammy Camp

21 Apr 2024 3 minute read 0 comments CryptoGemGR

In the recent Youtube live Ask Me Anything (AMA) session hosted by Stronghold's, CEO Tammy Camp stepped in for co-founder Sean Bennett to engage with the community, providing valuable insights into the company's development, challenges, and future p...