Stablecoin - News, Opinion & Analysis

Stablecoin

565 Articles 38 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.


Mike Ermolaev: 3 reasons behind the recent crypto market fall

17 Jan 2022 3 minute read 0 comments Mike Ermolaev

After a year of gains and record highs, cryptocurrencies are going through a turbulent time, and the market is in extreme fear territory. Why is this not surprising? There have been several major events we need to chew on.  The crypto market has suff...

Spell token and the Curve Wars. Also: a word about judgement and peace

16 Jan 2022 1 minute read 0 comments Aware1

It's a relatively quiet Sunday in the crypto market with not much in the way of price action or breaking headlines. Behind the scenes, the Curve wars heat up and the coin of the day is a rising contender in the battle for control. Spell Token $SPELL...

We get paid in Ampleforth, but what exactly is Ampleforth?

7 Dec 2021 1 minute read 5 comments LeftFooted

It’s a question I’m asking… myself. The first thing I thought when I first learnt about the existence of Ampleforth was, “that’s a cool name”. It sounds like a castle in Scotland, or an old liqueur. “Yeah, I’ll have an Ampleforth and Tonic, please”....

Stable Bitcoin rising above Bitcoin

16 Jan 2022 1 minute read 0 comments Yugocean

     We all know that Bitcoin is the world's first cryptocurrency, in addition we also know that stablecoins also play an important role in responding to market volatility.      These stablecoins are based on other established currencies, among these...

What is Sai? (SAI) [A Comprehensive Guide to SAI]

19 Nov 2019 7 minute read 6 comments Mr.CryptoWiki

I’ve talked about all sorts of projects in the past few weeks. The big names like Bitcoin, Ethereum and Ripple, and many others. I’ve stressed the significance of certain niches and trends, such as cloud computing and the emergence of exchange tokens...

For a stablecoin, Ampleforth is pretty unstable

17 Dec 2021 1 minute read 4 comments LeftFooted

I'm assuming that y'all, just like me, check your dashboard pretty often and that's how you know the $ countervalue of what you have (in AMPL and FARM) has been going down consistently for a couple of days. Now, that's fine with Harvest Finance (FARM...

The Importance of Decentralized Stablecoins: The Maker Protocol and the Terra Blockchain

18 Aug 2021 4 minute read 2 comments 2sats

*obligatory not financial advice* What are Stablecoins? A stablecoin is a token that is pegged to the value of a fiat currency and has the same price as its fiat counterpart. Essentially a stablecoin that is pegged to the US dollar is a tokenized dol...

How Ampleforth helped my grandmother with her favorite carrots

28 Dec 2020 13 minute read 9 comments SirGerardThe1st

1) Nothing tastes like grandma's carrot cake   -Hello Grandma! Did you go to the greengrocer today? -Hello my boy! No, I haven't gone yet. -Oh well, wait a while because I have to tell you something I discovered -Another of your follies -This is amaz...

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...

Ampleforth (AMPL) Integrated for Tipping on Publish0x

24 Nov 2020 7 minute read 74 comments Dan Bainbridge

You might have noticed that we have become a little DeFi obsessed here at Publish0x. Simply put, we think DeFi is where the activity is in blockchain right now. Obviously, Bitcoin is getting attention, and don’t get us wrong, we LOVE Bitcoin. But on...