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.


StableCoin : What's The Buzz with Stablecoins and Algorand

10 Jul 2020 12 minute read 17 comments Andrzej_0xa0

Over the past months and weeks, we've learned about two major stablecoins that will be migrating to Algorand blockchain (USDC, USDT). February 2020, Tether (the largest stablecoin by market cap) announced integration with Algorand platform , and a fe...

Stablecoin Provider Blacklist an Address with $100K USDC

9 Jul 2020 1 minute read 4 comments Abhimanyu Krishnan

Stablecoin provider CENTRE has blacklisted an address holding $100,000 USD Coin (USDC), the address data reveals. The blacklist function was called on June 16, 2020, using an address owned by CENTRE. Speaking to The Block, a spokesperson for CENTRE c...

Staking stablecoins and PoS coins: which is safer and more profitable?

9 Jul 2020 6 minute read 0 comments Kluma

As part of the launch of the first USD Neutrino  stablecoin, John Voronin, advisor and product consultant for the WAVES․Exchange multifunctional crypto exchange, analyzed and compared the stability indicators of stablecoins and conventional PoS crypt...

DeFi Major Functions

8 Jul 2020 2 minute read 0 comments CoinSteps

Decentralized Finance, most widely known as DeFi for short, is one of the hottest topics in the crypto space. There is a high possibility you already know what Defi is and its uses. Briefly the idea behind it is to take banks and governments and let...

Y Combinator And Coinbase Venture Are Investing In This Unpopular Cryptocurrency

3 Jul 2020 1 minute read 0 comments Ashma

Multiple crypto ventures are backing newly born projects with millions of dollars and now the race for stablecoins is getting really dramatic. In the past few days we've seen that the Tether (USDT), a stablecoin has crossed the precious amount of tot...

The Hype Around Reserve - A Stablecoin For Scaling Prosperity

26 Jun 2020 4 minute read 7 comments Cryptonator`s

Reserve is a decentralization project that has not so much talked about in the past month but now the hype around Reserve is getting bigger and bigger and indeed. A whole host of big names have invested in this project. For example, coinbase has inve...

USDC Coin to Support More Blockchains, Starting With Algorand

25 Jun 2020 1 minute read 4 comments Abhimanyu Krishnan

According to an announcement made on June 24, Circle and Coinbase backed stablecoin USD Coin (USDC) will begin to support more blockchains in the months to come, starting with the Algorand (ALGO) blockchain.  The Centre Consortium announced that it...

Federal Reserve Economists: Lawmakers' Worry About Libra "Overstated"

23 Jun 2020 1 minute read 1 comment Abhimanyu Krishnan

In a report published on June 22, economists from the United States Federal Reserve have said that earlier iterations of Facebook’s Libra currency had induced an overreaction from lawmakers and that the worries were “overstated.” Garth Baughman and J...

This Week's Headlines in Cryptocurrency and Precious Metals you may Have Missed

21 Jun 2020 2 minute read 0 comments JP Buntinx

It has been a very interesting week for the cryptocurrencies and precious metals markets. A lot of things have happened or are still developing at the time of writing.  This Week in Crypto One of the biggest headlines this week is how 60% of the Bitc...

Are they crypto? Are they money? Stablecoins under the radar!

21 Jun 2020 5 minute read 1 comment Heruvim78

Stablecoins. We keep hearing this term, but do you really know what they are and how they work? I will try to explain the basics, so you will know better how to deal with them. While Bitcoin provided the ground for the crypto-market, with all the tec...