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.


❄ 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....

Why does governments oppose cryptocurrency, DeFi, Stablecoins etc ???

13 Oct 2020 1 minute read 0 comments Blindworld

Recently we have seen regulators and central banks going against cryptocurrency and market decentralization today I will briefly explain why Governments around the world believe in the conventional idea of CeFi With a decentralized market, governmen...

G20 Nations Are Forming a Framework for Stablecoin Use

13 Oct 2020 1 minute read 1 comment Abhimanyu Krishnan

The Financial Stability Board (FSB), a global financial authority, has recommended to G20 nations a global stablecoin arrangement for assets like Facebook’s Libra, as announced on October 13. The FSB’s report sets out high level regulation and overs...

G7 opposes Stablecoins , How will this affect market, Libra and a lot more

13 Oct 2020 1 minute read 0 comments Blindworld

On a statement put out by the representatives of G7 countries (US, Canada, Japan, Germany, Italy, UK, and France) it was made clear that the launch of global Stablecoin projects will be opposed until a proper regulatory framework is in place. This g...

The ideal DeFi Ecosystem for the future

12 Oct 2020 1 minute read 1 comment Blindworld

WHAT IS DeFi? DeFi or Decentralized finance is an alternative for the conventional financial system which is known as CeFi or Centralized Finance. The ide of DeFi began to gain traction in early 2020. It is considered as the primary step for overhaul...

Stablecoin Aggregator DeFiDollar Launches Liquidity Mining Incentives and Retroactive Rewards

12 Oct 2020 1 minute read 1 comment Abhimanyu Krishnan

Stablecoin aggregator DeFiDollar on October 10 announced the launch of a liquidity mining incentive program, as well as retroactive rewards for its governance token DFD. DeFi Dollar’s liquidity mining incentive lets users earn DFD for the DUSD/USDC...

This is how cryptocurrency will replace fiat currency!!

8 Oct 2020 3 minute read 0 comments Blindworld

Crypto as of now is like a commodity, but the future will be very different continue reading to know how will crypto replace physical currency in the future, most of these predictions are by considering countries like India. DIGITAL WALLETS COMING T...

CoinMarketCap - Earn LUNA for learning about the Terra project

7 Oct 2020 1 minute read 35 comments PVMihalache

The 3rd "Earn money - Learn about Crypto" campaign started on CoinMarketCap. This time users will be rewarded LUNA tokens for learning about Terra Project. The campaign was supposed to end on Friday, the 9th of October but because the Binance's Luna...