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.


The Stablecoin Solution - Why Stablecoins are the Key To Crypto Adoption

24 Nov 2019 5 minute read 9 comments The Part Time Economist

One of the very first things that I learned in my Monetary Theory courses was that money is a “stable medium of exchange” that functions as a “store of value”. In other words, money allows us to receive payment for something today, hold the money, an...

USDTZ, an on-chain-Tezos stable coin, with optional revenue and on-chain-lending.

21 Nov 2019 4 minute read 0 comments Allen Walters

USDtez (USDTZ) is an on-chain-Tezos stable coin. 1 USDTZ will always match the value of 1USD.  USDTZ should provide liquidity for the Tezos financial ecosystem.  USDTZ is over-collaterized and backed by both Tezos (XTZ) and fiat. USDTZ can give you r...

What is Sai? (SAI) [A Comprehensive Guide to SAI]

19 Nov 2019 7 minute read 6 comments Mr.CryptoWiki

I’ve talked about all sorts of projects in the past few weeks. The big names like Bitcoin, Ethereum and Ripple, and many others. I’ve stressed the significance of certain niches and trends, such as cloud computing and the emergence of exchange tokens...

Multi-Collateral DAI - What does it mean for Raise?

18 Nov 2019 1 minute read 2 comments RobSpitz

Today (November 18th 2019), MakerDAO is launching its new version of DAI - Multi-Collateral DAI (MCD). After hitting their $100 million market-cap, MakerDAO needed a solution to continue their growth and minimise risk so as a result, MCD has launched...

Multi-Collateral Dai Starts Monday - Here's What You Need to Know

14 Nov 2019 5 minute read 4 comments The Part Time Economist

On the 18th of November, MakerDAO will be launching the new and improved Multi-Collateral DAI. For those of you who aren't familiar with Dai, it is one of the leading stable coins and is "minted" when users lock ETH into a collateralized debt positio...

PegNet Hits $1M Cap in Just 30 Days! - How To Catch Parabolic Trend?

11 Nov 2019 1 minute read 1 comment DoYouEvenCrypto

PegNet, the stablecoin network that is built on top of the Factom Protocol, has crossed the $1 million market cap in just a month. The PegNet network and its token has grown from the ground up, as there is no ICO or pre-mine in the network. The netwo...

PegNet Telegram AMA with David Johnston, Factom Chairman

5 Nov 2019 10 minute read 0 comments DoYouEvenCrypto

The Factom protocol and project is an enterprise focused effort that addresses data efficiency and security issues for businesses through a second layer built on top of the Bitcoin blockchain. The technical solutions proposed by the developers target...

What Is Paxos Standard (PAX)? - [A Comprehensive Guide to Understanding PAX]

1 Nov 2019 6 minute read 1 comment Mr.CryptoWiki

There are few patterns in the crypto market more noticeable in 2019 than that of stablecoins. Along with the tokenization of traditional assets, like real estate, the general trend has gone away from startups attempting to raise money quickly through...

PegNet Tokenomics - Everything You Need To Know about Peg and pAssets Stability

28 Oct 2019 9 minute read 3 comments DoYouEvenCrypto

Tokenomics – a combination of the words “Token” and “Economics” – is vital to understanding a cryptocurrency’s utilization and value proposition. It helps users and investors to see the potential of a cryptocurrency and make judgments based on a numb...

Stablecoins Vs. Fiat Money: Who shall Dominate More? Details!

24 Oct 2019 4 minute read 3 comments GoCryptoWise

Since the inception of the crypto space in 2009, Fiat money has had a direct competitor to its operations and authority as a means of payment. From around 2013, when cryptocurrencies started to gain traction and get recognition, many people have posi...