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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 market capitalisation of the new algorithmic stablecoin USDe has grown from $5 million to $3 billion — a 600-fold increase — in six months. In terms of pace, it overtook the Hong Kong FDUSD, which initially secured zero commissions in Binance, an...
Payments platform PayPal confirmed that its stablecoin is expanding to the Solana network, which will make PayPal USD (PYUSD) faster and cheaper to transact. The announcement comes 9 months after the company introduced PYUSD. José Fernández da Ponte...
Jasmine Cooper, the Head of DeFi Product at Ripple, leads tokenization and DeFi products within RippleX, the team focused on providing infrastructure, tools, services, and programs for developers to enable new crypto use cases on the XRP Ledger (XRPL...
HBD Savings is an amazing tool and passive revenue stream on the Hive blockchain that is offering 20% APR. If on top of that we consider the monthly compound effect, we increase it more. And with such a number and being a prove stablecoin in time, ho...
Introduction PayPal, a global leader in online payments, has launched PayPal USD (PYUSD), a stablecoin that aims to bridge the gap between fiat and digital currencies. Fully backed by U.S. dollar deposits, short-term U.S. treasuries, and similar cas...
Synthetic stablecoin startup Ethena Labs has announced a major collaboration with Bybit, a leading cryptocurrency exchange, to integrate its USDe token as a collateral asset on the platform. This integration marks a significant milestone for both Eth...
Hi guys, I just came across an article that wrote about Elon Musk hinting at the collapse of the U.S. Dollar due to a lack of the country's ability to pay back it's debt: https://www.cointribune.com/en/elon-musk-warns-of-the-collapse-of-the-dollar/....
Tether, the issuing company of USDT, partnered with the blockchain analysis company Chainalysis in order to implement a monitoring tool for stablecoin transactions. As Tether reports in a statement, the solution designed by Chainalysis facilitates t...
Etherspot has integrated with Subs Protocol to offer developers the flexibility to pay for their subscription plans using stablecoins. This collaboration is all about making life easier for developers in the Web3 space. Etherspot offers an Accou...
Introduction There’s been tons of discussion (especially among the Cardano community) on whether a native USDC stablecoin will benefit the Cardano ecosystem. Most of the people think that it will bring mass liquidity to the Cardano ecosystem, especia...
