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.


🚀2 New DeFi Stablecoins to Earn up to 21.89% APY

5 hours ago 1 minute read 2 comments Dapp.com

  When we mention stablecoins, you must think of three common stablecoins: USDT, USDC, and TUSD at first. DeFi is developing very fast, there are other stablecoins in the current market that worth knowing in addition to these 3 common stablecoins. ...

Explore OUSD - Stablecoin that Earns Yield on the Fly

26 Oct 2020 5 minute read 5 comments Brawnd0

Origin Protocol is a cryptocurrency project that is designed to enable real peer-to-peer commerce. Their ethos is simple - remove the middle-man and cut down on fees.  Currently, the entire commerce industry is run through intermediaries. Want to lis...

The Neutrino protocol: an algorithm that subverts stable-coins

26 Oct 2020 5 minute read 11 comments MikeZillo

All cryptocurrencies are characterized by a very high volatility that prevents the expansion of the technology on a large scale; to try to overcome this inconvenient feature, stable-coins have been established. Stable coins are nothing more than cryp...

Psyche is algorithm based stablecoin

26 Oct 2020 4 minute read 0 comments JaksHitam

Since the start of the crypto upset, numerous things have begun to push ahead. However, to push ahead, we needed to defeat significant impediments in any semblance of the cryptographic money unpredictability. While numerous individuals were searching...

Regulatory framework for digital Yuan is out

25 Oct 2020 1 minute read 1 comment Blindworld

CBDCs was in the spotlight for a few months now. China recently tested its Digital Yuan payment system in Shenzen where citizens claimed approximately 30$ worth yuan and spent it across shops. A proper regulatory framework was a requirement for a CBD...

The Bahamas now have their official digital currency

22 Oct 2020 1 minute read 0 comments martincanadese

Well, I guess this is kind of a milestone, the Bahamas became the first nation in the world to launch a state-backed digital currency (SAND DOLLAR) through the National Bank. My opinion is that, even if Sand Dollar will not revolutionize the world of...

CageChain Newsletter #131 | The Bahamas is First to Issue Its Sand Dollar CBDC, BitMex is Stepping Up Its KYC, Decentrailized Social Networks and More...

22 Oct 2020 1 minute read 0 comments KHubbard

  This week we found out which country would be first to release its CBDC and the winner is the Bahamas!  The Sand Dollar will be able to be transferred via mobile phone, which ensures 90% adoption for the island nation's population of 393,000 who o...

❄ Snow Swap ❄ The new iconic exchange liquidity pool

21 Oct 2020 4 minute read 9 comments PVMihalache

The newest winter iconic image is here! Say hello to SnowSwap, the newest exchange liquidity pool on Ethereum. The simple and efficient design is extremely efficient for stable-coin trading, wrapped tokens staking, and supplemental fee income for liq...

Did Fed Chair Powell Hint That Stablecoins Like USDC will be Used in the Transition to CBCDs? $ALGO $XLM $USDC

20 Oct 2020 1 minute read 1 comment Aware1

There has been a lot of news about recent statements made by Federal Reserve Chair Jerome Powel in regards to the creation of a digital dollar, most notably his quote that, "I think it's more important for the United States to get it right than it i...

DeFo - Waves' Forex trading stablecoins

17 Oct 2020 2 minute read 1 comment Simplify Crypto

Decentralized exchanges (DEX) brought inclusion to the business world and created several modalities within the “Finance” concept of investments, such as Savings, Stakings, Loans, Pools, and Swaps, with daily liquidity or not, with more risks or not....