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.


Central Banks May Prohibit Fully Decentralized Stablecoin Systems

15 Apr 2020 1 minute read 0 comments Abhimanyu Krishnan

The Financial Stability Board, an influential international body that is composed of all G20 members, on April 14 has published a lengthy document on regulating stablecoins that provides some insight into the regulatory body’s approach to the asset c...

A "Curve Finance" Overview - Swap, Stake, Earn, and Learn!

5 Mar 2021 3 minute read 0 comments SkyHigh DeFi

Need to swap assets without losing value to slippage? Looking to become a liquidity provider but not thrilled with the idea of impermanent loss? Curve Finance might be just what you're looking for!     What is Curve Finance? So, what exactly is Curv...

Facebook stablecoin: libra rebrands to Diem

2 Dec 2020 3 minute read 0 comments alberdioni8406

Article also published at my read.cash blog from my authorship. Recently the giant media corporation Facebook stablecoin, Libra, announced that will launch their coin in the early 2021 which will be pegged to a single Fiat currency, the US dollar. O...

Cryptocurrency portfolio and digital rewards - A new year's Eve story

31 Dec 2020 2 minute read 4 comments Heruvim78

Today i plan to talk about BlockFi, one of the main ways to save and be rewarded in crypto for my portfolio. Once upon a time, i used to keep all my crypto in my Coinbase account, getting nothing but extra fees everytime i tried to exchange the profi...

My Take on the Iron Finance Crash "Titanfall"

2 Jul 2021 5 minute read 0 comments flarnrules

TITANFALL   The decentralized finance protocol known as Iron Finance recently experienced a catastrophic failure, resulting in billions of dollars of value vanishing during a first its kind crypto-bank run. The IRON token is the stablecoin for the p...

EURxb - A New Stablecoin that pays 7% APR Without Staking

26 Mar 2021 1 minute read 0 comments busyjordy

CRYPTO CORNER EPISODE 185 In today's episode: ►A New Stablecoin That Pays 7% APR Without Staking or Lock-in Needed LINKS: 📄Website https://eurxb.finance/ 📄Telegram http://t.me/eurxbfinance 📄Twitter https://twitter.com/EURxbfinance 📄Discord https://di...

A world where crypto isnt existing.

18 Jun 2021 3 minute read 0 comments Code+231

"I wanted to kill myself... but then i had a cup of coffee" Sartre A thought that occurs to me every time i take a sip of the black juice which diverts your tjiughts on a highway towards my intentions.  The road infront of me,16 years into the future...

More tokens, more problems?

16 Jul 2020 1 minute read 5 comments Jandmade

Sometimes I have the question of whether to accumulate a few or a single cryptocurrency or accumulate of all types that I can. On the one hand, quantity versus quality is a decision that can balance the balance, but with the volatility of many crypto...

Crypto Savings Account - Blockfi

5 May 2021 2 minute read 0 comments Happy_rouge

I think I found a "savings" account that uses crypto. Blockfi. I was trying to find something to not replace my savings account but to boost it. Currently I use 2 different banks for savings. Bank 1 is my main bank that everything goes in and out of,...

OpenDAO Stock and Real Estate Backed Stablecoin Will Launch Soon

2 Jan 2021 1 minute read 2 comments lucasc

UMA Protocol lets developers build synthetic assets - a special kind of digital token which follows the price of some other valuable asset. For the last 3 months, they've run a Yield Dollar to mint based on collateral with a time limit. They represen...