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.


How To Buy Stablecoins With Credit Card On Binance Step by Step

13 Jun 2022 6 minute read 4 comments Cryptonator`s

With stablecoins, the cryptocurrency space really has become a lucrative and serious alternative to the traditional financial banking system. While you don't get any significant interest from your local bank, you can earn lucrative rewards from your...

USDD looks to be the latest scam to get exposed

24 Jun 2022 3 minute read 16 comments Patch

If you have learned something from the UST crash it should probably be that if something is too good to be true it probably is. So as UST cashed and burned up pops USDD. Tron´s answer to an algorithmic stable coin. And they are promising even more ou...

How Safe Are Stablecoins Part 2 – Algorithmic Coins

10 Jun 2022 9 minute read 2 comments Scott Cunningham

The question we aim to answer today is how safe & stable are stablecoins? Let’s dive into some failed examples of algorithmic stablecoins like UST, Basis Cash, and IRON and some new ones like USDD from Tron. https://peakd.com/hive-167922/@scottcbusi...

What's In USDT's Reserves? (FULL Breakdown)

14 Jun 2022 6 minute read 1 comment Krystal DeFi

Confidence in stablecoins isn’t what it used to be. With the recent depegging of TerraUSD (UST) from the US dollar, many investors have flocked towards stablecoins that are asset-backed, such as USDT, USDC and BUSD. In theory, you should be able to e...

Why Tether ($USDT) Hasn't Collapsed (Yet) And When It Will

24 Jun 2022 7 minute read 6 comments Pantera1

Tether (USDT) remains unaffected by accusations and the blows the crypto market receives. USDT, a stable coin with limited transparency and a model that attracts various allegations, so far manages to survive unhindered by market downturns. Also, USD...

Stablecoins: what they are, how they work, and their purposes and uses. Part 1

11 Jun 2022 3 minute read 0 comments MikeZillo

Stablecoins were created primarily as a lifeboat for the volatility of the crypto market. Later, mainstream finance also turned to this type of cryptocurrency as a maintenance of the purchasing power of fiat currency. As we all know, all investors, b...

My Early Strategic Preparation For The Current Bear Market

12 Jun 2022 3 minute read 5 comments Sapphire

It’s A Bit Late Now There are many who have been taken by surprise by this bear market and are now trying to put together a strategy for survival. Anyone who knows anything about financial markets will tell you that you have to front-run market trend...

SEC Investigation Status into Do Kwon and Terraform

29 Jun 2022 4 minute read 0 comments Cje95

Something that I was only aware of once I looked into it was that Do Kwon and Terraform Labs have been having legal issues for a while now. Both Kwon and Terraform Labs have been under investigation by the Securities and Exchange Commission (SEC) sin...

Beginner's Guide to Stable Coins

23 Jun 2022 4 minute read 4 comments AndrewCF

WHAT ARE STABLECOINS? You may have seen stablecoins plastered all across the news in recent weeks and there is good reason. The Terra project UST de-pegged and quickly unwound into a death spiral from $1 to basically nothing in just a few short days,...

Scientist invents new Stablecoin pegged to electricity

14 Jun 2022 2 minute read 6 comments Patch

Researchers from Lawrence Livermore National Laboratory have published a paper where in they explain how they are able to create a Stablecoin, or as they call it an E-Stablecoin, that is pegged to electricity. What they are claiming In short, what t...