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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.
24 Nov 2024 4 minute read 0 comments Messin' With Cryptos
Hey folks, if you’ve been following me since last bull market, you’ll know that I usually like to keep an eye on different stablecoin strategies, and as some of the rates that protocols have come out have skyrocketed, for me it’s full evidence that w...
25 May 2024 1 minute read 1 comment Behiver
Money makes money. And the money that money makes, makes money. No, I didn't say this, but it was rather Benjamin Franklin and he was so right and he captured the power of compounding returns. Rather than getting your yields out or being returned at...
8 Aug 2023 1 minute read 0 comments Ekonomistpanda
Stablecoin move from global payments giant PayPal Paypal, an online payment system that works over the internet, is preparing to launch the stablecoin option Paypal USD.Jose Fernandez da Ponte, head of PayPal's blockchain and digital currencies tea...
8 Feb 2023 1 minute read 0 comments Lazincome
Hi guys, I found an interesitng app in which you only have to tap a button every 24 hours to start the mining process. It is not real mining using your CPU, is all fictional, but you can earn for real! Basically you mine tokens convertible in BUSD,...
30 May 2022 1 minute read 1 comment LeftFooted
Like most people here (power of deduction) I was hurt by the Terra LUNA disaster and lost some cash. I didn't hold any LUNA at the time of the crash but I did have some UST, which is now worth around two beers. A few days ago, most major crypto exch...
31 Mar 2022 1 minute read 0 comments Defi Degsy
Trunk is a new stablecoin with the highest APR% of any stablecoin.
20 Dec 2021 5 minute read 0 comments lolobu
Do Kwon’s mysterious proposal If you follow Do Kwon on twitter you might have seen a recent tweet about elimination of #ANC airdrops for delegators into the TOP10 validators for the #Luna token. It is not uncommon to promote decentralisation but it’...
18 Feb 2021 1 minute read 1 comment FilzyDilzy
20 Jan 2021 1 minute read 0 comments JayC0730
First Ampleforth update Input: 7.20 AMPL Current: 6.79 AMPL Current Price: $1.13 Well as of now the rebate has made me lose AMPL but the coin itself has recently appreciated. I expect to see a positive rebase on this upcoming round. I'll keep updated...
30 Dec 2020 1 minute read 0 comments Dapp.com
🔥 Have you noticed the recent rise of algorithmic #stablecoins? Their social signal scores all have different degrees of increase🔥 Some of the most potential ones: #AMPL #YAM #DSD #BASE #ESD #FRAX 🔍 How their prices fluctuate? How are the projec...
