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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.


Revenue-based Algorithmic Decentralized Stablecoin — $EUSD

2 hours ago 7 minute read 0 comments El Dorado Exchange

  Stable-coins represents an interesting solution to fiat’s representation within the ever expanding ecosystem of cryptocurrencies and DEFI. Despite Bitcoin being hailed as a ‘storage of wealth’ and a ‘fight against inflation’ by the masses, the vola...

Equilibrium 101: EQD Stablecoin

23 Sep 2022 2 minute read 0 comments Equilibrium

The DeFi industry requires exceptional, ingenious services to grow into the financial behemoth it envisions. Equilibrium intends to establish itself as a leading service provider within DeFi through problem-solving products that address DeFi’s limita...

Does the U.S. Treasury Have It Out for Private Cryptocurrencies?

23 Sep 2022 8 minute read 7 comments Allen Taylor

One of the biggest concerns regarding the recently published Treasury Department report on CBDCs, titled The Future of Money and Payments, is that a central bank digital currency (CBDC) could easily be used to track private citizens. And because it c...

US Regulatory authorities are gearing up to ban stablecoins like Hive Blockchain's HBD

23 Sep 2022 4 minute read 1 comment Greenchic

US Stablecoin Draft looking to ban stablecoins like Hive blockchain’s HBD!! I was aware that US regulatory authorities were looking to regulate stablecoins ever since TerraUST’s grand collapse. However, the current stablecoin draft regulation that’s...

Tether, $USDT, is possibly in trouble due to legal issues

23 Sep 2022 2 minute read 21 comments Patch

The history surrounding Tether has been a story one indeed. And one that I have only scratched the surface of myself. But it might make for an interesting future post. The point is they have been the target of controversy in the past so this is no ne...

Crypto - It's Time For The Speculators To Make Way For The Earners

22 Sep 2022 3 minute read 0 comments Sapphire

No Stability To Be Found Financial markets and economies are in a state of chaos, despite the reassurances being offered by certain politicians and the like. I understand that the primary objective is not to cause alarm and panic. However, how can ci...

New York Court Issues Order Requiring Tether to Furnish Documents Proving the Backing of USDT

21 Sep 2022 2 minute read 1 comment kev_nag

“Tether, which is owned by the same company as crypto exchange Bitfinex, has been ordered to release “general ledgers, balance sheets, income statements, cash-flow statements, and profit and loss statements” in addition to information about the timin...

U.S. House Draft Bill to Impose a Two Year Ban on New Algorithmic Stablecoins

21 Sep 2022 2 minute read 1 comment kev_nag

Legislation to regulate stablecoins that’s being drafted in the House would place a two-year ban on coins similar to TerraUSD, the algorithmic stablecoin that collapsed earlier this year. Under the latest version of the bill, it would be illegal to...

Celsius asks Bankruptcy Court Permission to Sell It's Stablecoins

16 Sep 2022 2 minute read 0 comments kev_nag

“Celsius Networks, a crypto lending company that had frozen withdrawals in June and has been proceeding through Chapter 11 bankruptcy since July, asked the United States Bankruptcy Court for the Southern District of New York for permission to sell it...

🦀🦐 The Signals That Come Before The Crash

14 Sep 2022 1 minute read 0 comments Candlestick

  Quicktake: 3 key stablecoins on-chain data show the same similarities before the crash: Net Buy Value & Buyers number surged.     The three key stablecoins USDC, USDT & DAI showed abnormal on-chain data right before the slump....