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.


What is DAI? A simple explanation

28 Jun 2019 10 minute read 1 comment Roberto D.

In December 2017, the Maker company released their long awaited system for a decentralized "stablecoin", called Dai (DAI). A stablecoin, as the name suggests, is a currency whose value is (relatively) stable, therefore lacking the wide fluctuations t...

DAI Statistics: Leading by example

26 Jun 2019 6 minute read 18 comments Niklas Spille-Scheich

"Too much volatility to be of any use" is one of the main concerns when it comes to accepting Cryptocurrencies. Those who did accept their salary in any of the major cryptocurrencies had a tough time living through 2018's bear market: "Our salaries w...

CALIBRA AND LIBRA: THIS IS HOW FACEBOOK WANTS TO BECOME A BANK

20 Jun 2019 2 minute read 1 comment Roberto D.

Facebook has unveiled the first details of its project to become a bank. The key elements are the creation of a cryptocurrency, Libra, and the co-foundation of a non-profit organization, Libra Association, which will act as the central monetary autho...

Necessity of a stablecoin within the Nexus ecosystem: how can it realize it's potential without one?

20 Jun 2019 3 minute read 1 comment HarmonyMedia

      For a little while I have been trying to bring this issue to Nexus community members, yet few seem to grasp how essential a stable unit of account is for the adoption of blockchain technology. I believe this is a rather dangerous disposition th...

Stablecoin: the currency for the economy of the future, but the road is still long

19 Jun 2019 8 minute read 2 comments Roberto D.

The next generation of stablecoin, based on a balance between algorithmically managed supply and demand, aims to reinvent the global monetary system, but first it is necessary to wait for cryptocurrencies to reach maturity and see how they interact w...

Facebook’s Libra Coin: A hit or Miss?

19 Jun 2019 1 minute read 1 comment Cryptofivers

The most hyped up Libra coin’s whitepaper was unmasked a few days ago and not everyone is happy with what the new kid on the crypto block is designed to tackle. A candid look at the project reveals there is more than what meets the eye. The French fi...

DAI - A Solution for Uncertainity & Liquidity Demand - Technical Analysis?!

12 Jun 2019 1 minute read 11 comments chrispop

I want to start off by defining a stablecoin. I don't want to bore you with the Wikipedia definition so a stablecoin is a cryptocurrency that has low volatility by being backed up with fiat currencies, different assets like gold, silver, etc.  Our su...

DAI: The Decentralized Stablecoin

5 Jun 2019 5 minute read 14 comments jwrandolph

We are in the midst of the longest crypto bull run since 2017. If you’re like me, you’re feeling good about the assets that you have going way up in value, and maybe, also feeling bad that you didn’t buy more a month ago. Among all these coins that a...

DAI Stablecoin, The new ERC20 token to give and receive tips in Publish0x

3 Jun 2019 1 minute read 2 comments BtcSapiens

In another post we had talked about the mysterious token that was going to be added on the platform, and today, we have solved all our doubts, we are talking about DAI Stablecoin, and if you notice that today in Publish0x your earnings do not fluctua...

DAI Token Integrated For Tipping on Publish0x

3 Jun 2019 1 minute read 80 comments Dan Bainbridge

Today we are super excited to integrate our 3rd token for tipping - DAI . The eth based stable coin created by the Maker DAO project smart contract. It's important to note that this is NOT a "sponsorship". We haven't taken any payment from MakerDAO o...