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.


Bitcoin Political News - Russia and China state led insider trading !!! Taxes are good! Plus - pure, lurking evils of stablecoins loom for US

12 hours ago 4 minute read 4 comments Dave Sawyer

Hey Cryptopunks, God knows you know we love ya.  Thanks for freeing money from the state. If we make it.  If not,  thanks for trying.  Thanks for the most likes eVAH last article, and for our first double digit downvote! Yay!  please tell me what pee...

European Union plans to regulate cryptocurrency

25 Sep 2020 1 minute read 3 comments Heruvim78

I am writing less lately, as i started my full time job, once again, and i am only free in weekends at the moment. Some days I am working from 8 to 20, so i cannot wait to come home and sleep one extra hour if possible, instead of staying online.  St...

The Cheapest Way to Convert Stablecoin to Stablecoin

24 Sep 2020 4 minute read 0 comments PNin

Yesterday I tried my first “Frictionless” stablecoin conversion.  ---Vite Exchange (ViteX Referral: 3186597827) is a little known DEX that has extremely low trading fees and offers high rewards to its members. It’s semi-open listing policy allows acc...

Bidao tokens released !

24 Sep 2020 1 minute read 11 comments Camillus

It has been announced via Bidao’s telegram group that the Bidao tokens have finally been released on uniswap today. Those who have participated in the ICO were able to receive compounding staking rewards of 30% and should have received their tokens i...

ECB: Stablecoins a Less Plausible Store of Value, Term Stablecoin is Misleading

23 Sep 2020 1 minute read 0 comments Abhi K

The European Central Bank (ECB) issued a report on September 22 where it spoke, among other things, on stablecoins. It tentatively suggested that digital assets could be useful, but also notes that it poses risks to current systems. The report discu...

Origin Releases OUSD, a Combination of USDT, YFI & AMPL

23 Sep 2020 1 minute read 0 comments Abhi K

On September 23, the Origin Protocol released its Origin Dollar (OUSD) stablecoin with an accompanying wallet, which provides interest on savings without requiring prior staking or farming. The stablecoin does not require staking or addition to a li...

Stablecoin: Why We Need It

21 Sep 2020 5 minute read 1 comment MintDice.com

The cryptocurrency market is incredibly fast-paced, with coins often fluctuating in value several times a day. This is evident in the case of Bitcoin's price, which saw an increase from a little above $5,000 to a record high of $19,783.21 in December...

France chosen Tezos (XTZ) to power the CBDC Stablecoin

18 Sep 2020 1 minute read 13 comments PVMihalache

France effort to develop an stable-coin pegged on Euro is moving forward, as Societe Generale announced the partnership with Nomadic Labs. The updated took place on the 15th of September, as the major Tezos development firm shared the news via Twitte...

0 friction stablecoin conversion on ViteX

17 Sep 2020 1 minute read 0 comments Isda Chen

Why  you need stablecoin conversion With the popularity of the DEFI concept from the Middle of June, stablecoins also had an eruption and the total market cap attained over 14 billion USD. There are many scenarios that need to use stablecoins, but e...

Worried About Ethereum Transaction Fees? Try Out Stablecoin on Tron Blockchain

16 Sep 2020 1 minute read 0 comments NOWPayments

For the past few weeks, there has been an increase in ETH transaction fees, which has led to a disruption in the market, when they reached an average of $10.33. It called for the need for alternatives that can save traders from the skyrocketing trans...