Stablecoin - News, Opinion & Analysis

Stablecoin

169 Articles 14 Followers

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.


After 9 Months of Near Silence, Facebook Offers a Huge Update on Libra Project

17 Apr 2020 1 minute read 26 comments Abhi K

On April 16, the co-creator and board member of Facebook’s Libra project, David Marcus, has published a series of tweets that gives an update on the project, which has endured months of silence and doubt since its original announcement.  Saying that...

Lien — A Novel Crypto-backed Stablecoin Design Without Overcollateralization or Governance

4 Apr 2020 3 minute read 6 comments rhyzom

Lien was recently announced (white paper dated April 1st, 2020) DeFi project which describes a new stablecoin mechanism where Ether (ETH) is sliced into two tranches of derivatives — Solid Bond Tokens (SBTs) and Liquid Bond Tokens (LBTs). LBTs absorb...

The unstoppable rise of Stablecoins

28 May 2020 5 minute read 6 comments Paolo Kolla

The cryptocurrency space has seen a huge expansion of stablecoins in the past year. Almost 60 different projects are currently live and many more are being created. This week, the value of assets for all stablecoins surpassed $10 billion for the firs...

Tezos first stablecoin is officially launched: USDtz

5 May 2020 1 minute read 6 comments Allen Walters

Yesterday USDtz went live. USDtz is Tezos first stablecoin and will be part of a DeFi ecosystem that is in the process of being build. Quick recap from my last article: USDtz is a stablecoin with DAO features that is part of a DeFi ecosystem. USDtz i...

Best Place for Canadians to Buy and Sell Stablecoins in 2020...

23 May 2020 4 minute read 13 comments walkonwayvs

Introduction Things are a little different in Canada in terms of cryptocurrency. Mainly the conversion rate between CAD/USD is pretty shitty almost always and because of that there are fewer options to be able to transact with Canadian Dollars. Eh. B...

CoinFalcon Learn - Guide to Decentralized Finance (DeFi) Part Two

8 Apr 2020 6 minute read 2 comments cam_elica_24

  In the Part One of this series, we introduced Decentralized Finance (DeFi) and why it is the solution to the many drawbacks of our current traditional financial system. We also broke down the differences between DeFi and FinTech. In this episode, w...

EURS and their wallet analysis. Finally a Tether USD worth opponent? | Testing Wallets #1

25 May 2020 3 minute read 8 comments CryptoMartin

During the last days I've been searching about stablecoins and I figured out that most of them are based and backed up by the US Dollar, basically, in my opinion, because is the most important currency in the world, so having it, without having in mi...

Stable Coins Guides - Capture your crypto value safely!

14 May 2020 4 minute read 2 comments Wishiknew

Stable Coins Source: Block.tech Why do we need Stablecoins? Crypto can be very volatile. Within a day, it can go up and down by over 10% or even 90%. We need coins to capture the value and reduce volatility for it to be useable. Who use it? Traders...

Did you miss Tether's recent velocity?

1 Apr 2020 1 minute read 4 comments paragism

Cover Image - Created by the author using free vectors In the recent cryptocurrency market crash of March’20, Bitcoin price dropped to the level of $4000 in several exchanges. Bitcoin bounced back to the level of $6000-6500. Market is bearish but sta...

Traditional Savings are Dead, So Now What?

28 Mar 2020 3 minute read 18 comments Jtodd

As many may know, earlier this month The Federal Reserve cut interest rates to almost zero. The Federal Reserve manipulates the interest rate in order to control inflation and encourage consumers to move funds from savings to spending in order to sti...