Stablecoin - News, Opinion & Analysis

Stablecoin

166 Articles 14 Followers

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.


Curate Bitcoin 04/09/2020 by dobobs

10 Apr 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

CoinFalcon Learn - Guide to Decentralized Finance (DeFi) Part Two

8 Apr 2020 6 minute read 2 comments cam_elica_24

  In the Part One of this series, we introduced Decentralized Finance (DeFi) and why it is the solution to the many drawbacks of our current traditional financial system. We also broke down the differences between DeFi and FinTech. In this episode, w...

Lien — A Novel Crypto-backed Stablecoin Design Without Overcollateralization or Governance

4 Apr 2020 3 minute read 6 comments rhyzom

Lien was recently announced (white paper dated April 1st, 2020) DeFi project which describes a new stablecoin mechanism where Ether (ETH) is sliced into two tranches of derivatives — Solid Bond Tokens (SBTs) and Liquid Bond Tokens (LBTs). LBTs absorb...

Binance Launches BiDAO: Differences With MakerDAO (DeFi)

4 Apr 2020 1 minute read 2 comments ☑️Arͬcͨaͣ🅽🅶eͤl̜̝̖̼͔̞̃ͮ͑̐̉͌🅾➏➏➏

The big trend launched in recent years is certainly that of 𝔻𝕖𝔽𝕚. I had already talked about MakerDAO And DAI (The Most Interesting DeFi Projects), now 🄱🄸🄽🄰🄽🄲🄴 also wanted to enter this market with 𝓑𝓲𝓓𝓐𝓞.Official site: BiDAOThere is also an important...

Jiltokens - Not a Standard Review

4 Apr 2020 10 minute read 2 comments walkonwayvs

What's good crypto people. I don't like to fuck around with the nonsense so let's great straight into this one. If you don't have the time or care to read the entire article below let me break it down for you: Jiltokens have two projects, one called...

Did you miss Tether's recent velocity?

1 Apr 2020 1 minute read 4 comments paragism

Cover Image - Created by the author using free vectors In the recent cryptocurrency market crash of March’20, Bitcoin price dropped to the level of $4000 in several exchanges. Bitcoin bounced back to the level of $6000-6500. Market is bearish but sta...

MONEY ON CHAIN PLATFORM - A REVOLUTION IN THE DEFI SPACE

30 Mar 2020 2 minute read 1 comment depedro

The global financial system is breaking down due to the dependency on the regular fiat currency.Fiat has become inefficient at different levels, due to flaws such as slow rate of operations and high transactions fee and centralization. All these and...

Traditional Savings are Dead, So Now What?

28 Mar 2020 3 minute read 18 comments Jtodd

As many may know, earlier this month The Federal Reserve cut interest rates to almost zero. The Federal Reserve manipulates the interest rate in order to control inflation and encourage consumers to move funds from savings to spending in order to sti...

Curate Bitcoin 03/26/2020 by dobobs

27 Mar 2020 5 minute read 0 comments dobobs

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of CURATION. Every investment and trading move involves risk. You should conduct your own research when making a decision. Bitcoin News R...

News, campaign and program on the Waves Exchange

26 Mar 2020 1 minute read 0 comments Thiago Capuano

Everyone knows that WavesDex has switched to wave.exchange, have read or heard of Neutrino Dollar, a stablecoin dollar-based token and algorithm with some stake yield benefits, but there are a few more new features that have just arrived. Novelty The...