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.


Once More into the Bone Yard

24 Feb 2021 7 minute read 0 comments LoonyLiberal

In the middle of January, I left Las Vegas as swiftly as my legs and wheeled suitcase could move. After making a stop in Texas to visit a college friend, I moved into a temporary housing situation that Three Gen Media's owners arranged for me. My tim...

Another Near Miss with Outrageous Gas Fees

23 Feb 2021 1 minute read 16 comments rah

Maybe I was being a bit smug yesterday. I’d been waiting for a correction and I was genuinely excited about the falling figures having positioned myself to take advantage of this and being impatient as I am I couldn’t resist taking a small advantage...

What is Ampleforth (AMPL)?

20 Feb 2021 1 minute read 0 comments chris04

Ampleforth (AMPL) is an innovative stable coin, based on ethereum's ERC 20 protocol, which tends to be stable with the elastic delivery method. Ampleforth therefore aims to be an unsecured synthetic asset, in fact, it has no collateral whether it is...

Algorand (ALGO) Innovation Competition: A New Way to Transfer USDT/USDC: $35,000 to be Won!

18 Feb 2021 1 minute read 0 comments renangeographia

Algorand's Innovation Competition (ALGO): A new way to transfer USDT/USDC; $35,000 to be won! To celebrate KuCoin's support of Tether (USDT) and USDC Coin (USDC) deposit and withdrawal services at Algorand (https://steemit. com/kucoin/@kucoinbrasil/k...

What is the use of stablecoins in crypto?

15 Feb 2021 4 minute read 1 comment Answerly app

What are stablecoins?  Asset-backed cryptocurrencies. This is probably the simplest definition of stablecoins that you are likely to come across. We know it is far from satisfactory though! This is exactly why we are going to talk about stablecoins i...

OK Bidao is here. And it is not going away.

12 Feb 2021 1 minute read 1 comment Cryptodude01

Bidao is building a decentralized back (DeFi) and trustless stablecoin framework to form a more open, borderless, straightforward world through monetary services. A decentralized stablecoin framework makes the opportunity for an open financial system...

🇧🇷 Brazilian Stablecoin BRZ expands to Algorand Network 🇧🇷

11 Feb 2021 2 minute read 0 comments renangeographia

The Algorand protocol is the third blockchain to enter into a partnership with BRZ, increasing the possibilities of use cases for Brazilian cryptocurrency backed by the Real (BRL). Transfero (issuer of stablecoin BRZ) announces that stablecoin in re...

How Equilibrium’s Stablecoin Works

11 Feb 2021 6 minute read 1 comment Equilibrium

By now you’re familiar with the thinking and functionality that drives Equilibrium. We’ve taken a broad view at how our platform operates, why it’s an improvement over other solutions, and we’ve introduced you to our core system asset, the EQ token....

DeFi : Risk = Yield

11 Feb 2021 4 minute read 0 comments MxFr66

Finance in the broad sense has interested me for a long time, I am always surprised not to have nabbed the blockchain ball on the fly earlier (French expression). I have only been interested in decentralized finance since 2020, and I don't dare to fu...

Poised for the next crash!

10 Feb 2021 1 minute read 4 comments rah

There is a chance I am reading the market wrong, but overnight I finally crossed the line and can say that I have more than recovered from the September crash that has haunted me ever since. After an overnight surge in Yearn Finance I am now holding...