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.


5 lesser known USD Stablecoins

8 Nov 2021 1 minute read 0 comments Yugocean

Most of the fiat-based stablecoins are based on UDS, with only a few being used extensively in trades. Here I am informing about 5 good but less popular USD based Stablecoins - Stable USD (USDS) It is issued by Stable Corporation, a financial techno...

Bitcoin Baby - Day 29 "USD Stablecoins are not the solution Stupid Baby!" #Hyperinflation

7 Nov 2021 3 minute read 9 comments BitcoinBaby

This is a note to my stupid self.... that stupid self that saw the Hyperinflation coming but overlooked a little fact. Stupid, Stupid baby....why did you put so much money into stable coins? "Well to buy the Dip!" What dip did you expect, you foolish...

Dreaming at Bean Money while Climbing on the Beanstalk Protocol

5 Nov 2021 3 minute read 1 comment PVMihalache

What is Beanstalk Protocol? DeFi and NFTs were the hot topics of 2021 with huge projects such as Harvest Finance, Badger, Crypto Punks, Cool Cats getting the highlights. New yield farms are deployed weekly and new NFT projects are launching on variou...

Pylon Gateway launches $ ORION, the new savings and payment platform for stablecoins || Pylon Gateway lancia $ORION, la nuova piattaforma di risparmio e pagamento per stablecoin

4 Nov 2021 5 minute read 6 comments ifiwasfrank

🇮🇹 Trovate la versione italiana dell'articolo dopo quella inglese   Great news from Terra ecosystem (the blockchain, not our planet) and more specifically from Pylon Gateway, a permissionless platform that allows projects born on Terra to launch t...

DSR - DeFi Secrets Revealed: Impermanent loss what is it and how to defend against it

4 Nov 2021 3 minute read 5 comments MikeZillo

We hear a lot about impermanent loss in the DeFi environment and in order to keep it within appreciable limits it is advisable to use stable-coins.But what exactly is it and why do stable-coins help us? The liquidity poolWe know very well that in ord...

Importance Of Stablecoins

4 Nov 2021 1 minute read 1 comment Yugocean

A stablecoin, true to the name, is a stablecoin; it is based on the mirror image of a real-world fiat currency.Most of the stablecoins are based on United States Dollar (USD), like USDT, USDC, DAI, USDP. Even multiple exchange platforms have USD base...

Get To Know Equilibrium’s Stablecoin, EQD

3 Nov 2021 1 minute read 1 comment Equilibrium

If you’re going to set a strong tone for the future of finance, you need a good dollar to do it. EQD is Equilibrium’s USD-pegged stablecoin that works to represent value in its DeFi ecosystem. As a decentralized stablecoin, EQD enters circulation whe...

Magic Internet Money ($MIM) is a real cryptocurrency.

31 Oct 2021 1 minute read 4 comments Kopi

I'm honestly blown away by all this naming in crypto - it really does sound like some full-scale ponzi, doesn't it? Before you get offended (if you're a fan), I will tell you I'm also vested. In summary, $MIM is functioning like a stable coin. On the...

My thoughts on Hodlnaut

29 Oct 2021 3 minute read 0 comments Lukros76

I've had some time to use the platform, read around what others think and in all honesty use it more frequently than I expected to. So I wanted to review it since I hadn't ever used a crypto interest account platform before and it's still quite new a...

Learn about Mars Ecosystem & earn $5 XMS - CoinMarketCap Earn

29 Oct 2021 1 minute read 0 comments wantumeni

The Mars Ecosystem "Learn & Earn" campaign will run from October 29th to November 27th. What is Mars Ecosystem? Mars Ecosystem is a new decentralized stablecoin paradigm, it integrates the creation and use of stablecoin into the same system. It cons...