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.


10 % daily yield on stable coins? On BSC!

22 Nov 2021 2 minute read 0 comments Bigapplebo

“I’m not a financial planner and this is not finanacial advice, just my experience using the BNBroyal protocol on BSC.”   I’ve been using this new Binance yield farming or savings protocol just launched. I just discovered it actually by watching You...

HALO Stablecoin: What Is It And Why Should You Care

21 Nov 2021 3 minute read 0 comments RitabeII

It’s common knowledge that cryptocurrencies are highly volatile assets. Due to the rapid change in the value of these digital assets, stablecoins were launched to serve as a store of value. The emergence of stablecoins has helped those in the crypto...

MARHABA - You are welcome to try Shariah-complient decentralized finance

21 Nov 2021 3 minute read 13 comments PVMihalache

MRHB DeFi aims to bring innovation in the Cryptoverse, by creating the world's first shariah-compliant decentralized finance platform. MARHABA is powered by a team of dedicated experts in the fields of finance, technology, and Islamic Finance & Theol...

Stablecoins Find a Friend in Federal Reserve Governor Christopher Waller

20 Nov 2021 4 minute read 0 comments kev_nag

Earlier this month the President's Working Group made recommendation that stablecoin issuance be restricted to banks and other insured depositary institutions. The PWG specifically recommended that Congress should pass legislation to this effect. [Se...

HOLDING TETHER IS A BAD IDEA PART II

17 Nov 2021 3 minute read 0 comments XanPharaoh

Yo guys, XanPharaoh here.   As promised, HOLDING TETHER IS A BAD IDEA PART II is here. I know that you guys have been waiting and I'm sorry. But trust me, what you are about to read is worth the wait.   Let me just start by saying that I am not a qua...

What To Do When The Crypto Market Dumps!

17 Nov 2021 3 minute read 0 comments Sapphire

Easier Said Than Done In hindsight, one can always say exactly what one should have done, as well as when and how. However, markets have a way of tricking you, confusing you, and ultimately leaving you mesmerized. This is done with intention by those...

HOLDING TETHER IS A BAD IDEA Part I

15 Nov 2021 2 minute read 10 comments XanPharaoh

Yo guys, XanPharaoh here. Just here to let you guys know that this is the first part of a series called 'HOLDING TETHER IS A BAD IDEA'. So I was just feeling really suspicious of Tether, I was just thinking that there is no way that a crypto projec...

Climbing up the Beanstalk - 100 days for Jacktoshi and the Golden Beans

15 Nov 2021 2 minute read 1 comment PVMihalache

100 days of Beanstalk Time goes quicker in the Cryptoverse and even if feels like ages since Beanstalk innovated the stablecoins system ... this project celebrates only 100 days! The story started 100 days ago, when the protocol was deployed on the E...

Why should you even listen to me?

15 Nov 2021 1 minute read 0 comments XanPharaoh

My name is XanPharaoh. You should absolutely not make any decisions based on what I post. I am a young crypto enthusiast who has been paying close attention to stablecoins. I simply just thought of it as being absurd if I have to be honest. Like how...

New Fed Report Ranks Stablecoin “Threat” as Similar to U.S.-China Tensions and Climate Change

10 Nov 2021 1 minute read 1 comment DailyCoin

Visit DailyCoin for more articles In its latest Financial Stability Report published Monday, the U.S. Federal Reserve ranked cryptocurrencies and stablecoins among its top risks to U.S. financial stability over the next 12-to-18 months.   F...