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.


MONEY ON CHAIN PLATFORM - A REVOLUTION IN THE DEFI SPACE

30 Mar 2020 2 minute read 1 comment depedro

The global financial system is breaking down due to the dependency on the regular fiat currency.Fiat has become inefficient at different levels, due to flaws such as slow rate of operations and high transactions fee and centralization. All these and...

Traditional Savings are Dead, So Now What?

28 Mar 2020 3 minute read 18 comments Jtodd

As many may know, earlier this month The Federal Reserve cut interest rates to almost zero. The Federal Reserve manipulates the interest rate in order to control inflation and encourage consumers to move funds from savings to spending in order to sti...

Curate Bitcoin 03/26/2020 by dobobs

27 Mar 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

News, campaign and program on the Waves Exchange

26 Mar 2020 1 minute read 0 comments Thiago Capuano

Everyone knows that WavesDex has switched to wave.exchange, have read or heard of Neutrino Dollar, a stablecoin dollar-based token and algorithm with some stake yield benefits, but there are a few more new features that have just arrived. Novelty The...

Cindicator: Long-term Predictions (Gaming, Exchanges, SNX, Stablecoins and Central Banks)

24 Mar 2020 4 minute read 0 comments bengy

  Predicting the week/monthly prices and bounds on Cindicator has been a bit of a nightmare in the last week or two! Chaos reigns in all markets, from the oil war, to the crash in cryptocurrencies and traditional markets... followed by swings all ov...

Curate Bitcoin 03/23/2020 by dobobs

24 Mar 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

DAI $DAI | 2020 HODL Experiment

16 Mar 2020 2 minute read 3 comments Cryptolohy

Public Service Announcement: I am running a year-long giveaway, check out how you can participate here: https://www.publish0x.com/cryptolohy101/cryptolohys-airdrop-and-giveaways-experiment-2020-edition-xzxewg?a=Vyb896ldvA   Wow, what a couple of da...

In-VIGOR-ating News

12 Mar 2020 6 minute read 8 comments Jimmy D [Upliftnation.io l Vigor.ai l Trybe.One]

  On March 5th, 2020, Vigor officially received correspondence from their patent attorney regarding the patent application based on the White Paper: International Search Report and The Written Opinion of the International Search Authority. “We are pl...

Users Will Pay NUT Fees In EOSDT Starting March 16

12 Mar 2020 1 minute read 1 comment EquilibriumEOSDT

We are making a change that significantly improves user experience with the Equilibrium framework. Starting next week, our users will deal with just one token — EOSDT — and be free of obligation to take exposure to other assets. It used to be that Eq...

Сryptocurrencies are a threat to the banking system

2 Mar 2020 1 minute read 0 comments Kluma

Deputy Governor of the Central Bank John Cunliffe told what advantages digital coins have, and why they can harm financial stability The development of the digital industry can become a threat to financial stability and the banking system as a whole,...