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.


USD Tez (USDtz): The Tezos Ecosystem Stablecoin Design

3 weeks ago 3 minute read rhyzom

USDtz is the stablecoin used in the Tezos ecosystem. It's an interesting and fairly unique stablecoin design and an impressive feat of (decentralized) financial engineering implementing a set of mechanisms in maintaining the peg to the US dollar. US...

Announcing INSTARS <> DAI Partnership

2 weeks ago 2 minute read Insights Network

  Today, we're proud to announce our partnership with Maker DAO as we officially launch the Dai stablecoin integration on the instars.com platform. Starting now, users all over the world can now participate in market research such as surveys or uplo...

A storm of global rivalries to develop CBDCs is brewing

3 weeks ago 4 minute read fklivestolearn

The major central banks are investigating potential use cases of the digital equivalents of fiat currencies at an accelerated pace   If there has been one overwhelming factor that has precipitated these aggressive moves by the global central banks to...

Publish0xTutorials: What to do with your DAI?

1 week ago 5 minute read bengy

  So, you have just cashed out your BAT (Basic Attention Tokens) from Publish0x (or elsewhere) and they are now sitting in a wallet to which you hold your own private keys. What to do with them now, what do they do? What is Dai?       Unsplash...

DAI Token Integrated For Tipping on Publish0x

3 Jun 2019 1 minute read Dan Bainbridge

Today we are super excited to integrate our 3rd token for tipping - DAI . The eth based stable coin created by the Maker DAO project smart contract. It's important to note that this is NOT a "sponsorship". We haven't taken any payment from MakerDAO o...

Cardano ADA and 2020 Stablecoin Market?

1 week ago 2 minute read TiddyBit

Opinion: Cardano what can I say. It has its problems but it still looks optimistic. I was lucky enough to gain entry around 3-4 cents before test staking came out right at its bottom dip around December 2019. With all of its news and hype that is gre...

Cindicator: Schnorr, Stablecoins and Privacy coins

3 days ago 2 minute read bengy

    Image from Google Play store, press kit for Cindicator   Cindicator has being spawning a batch of really quite long term predictions for this coming year (2020). The last batch were more to do with price predictions... which are tricky things at...

Stable coins are now dominating ethereum blockchain

3 weeks ago 1 minute read CryptoArgha

Blockchain based Decentralized ecosystem ethereum is no longer a famous crypto asset building platform anymore Ether ethereum native crypto currency isnt dominating the ethereum blockchain anymore as stable coins took its place According to analysis...

DAI Statistics: Leading by example

26 Jun 2019 6 minute read Niklas Spille-Scheich

"Too much volatility to be of any use" is one of the main concerns when it comes to accepting Cryptocurrencies. Those who did accept their salary in any of the major cryptocurrencies had a tough time living through 2018's bear market: "Our salaries w...

What is Tether USD (USDT)? The Stablecoin Fiasco.

5 Oct 2019 14 minute read CryptoBoomer

"The underlying cause of the crash will be found in the preceding months and years, in the progressively increasing build-up of market cooperativity, or effective interactions between investors, often translated into accelerating ascent of the mark...