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.


Another Week of US Dollar Roller Coaster Ride

3 Sep 2021 2 minute read 0 comments LL21

For those who are holding USD in your pocket, you may not feel anything in the past week, but other fiat currency holders could definitely feel a roller coaster ride for USD exchange rate, especially those who are in import-export business or exchag...

FOR TERRA FANS | Step-by-step: How to swap your BUSD, USDT or USDC into Terra UST

1 Sep 2021 4 minute read 3 comments crush89

Prelude: The Terra Ecosystem For those who don't know, the Terra Ecosystem is one of the most exciting integrated DeFi spaces out there. It all takes place in the same blockchain, and can integrate with virtually all others. You can earn 20% APY fix...

101. USDP

30 Aug 2021 1 minute read 0 comments HunterH

Paxos USD is an ERC-20 token live on the ETH Mainnet. It's been hanging out at the 101. spot for a while. Check out how it's moved since then. It is an obvious stablecoin pegged to the value of the USD, and throughout its 2 year life, the price has r...

What is Maker (MKR)? And Should You Invest In It?

24 Aug 2021 4 minute read 1 comment MintDice.com

In the cryptocurrency world, there are so many alt coins that it is simply impossible to invest in them all. This means you need to pick and choose your investments carefully. Especially when it comes to alt coins because many of them can actually b...

Ampleforth in focus, the self adjusting stablecoin

23 Aug 2021 2 minute read 3 comments Austras

Ampleforth is a interesting approach to solve the problem with crypto's volatility, adjusting the supply based on the coin's current spread to the US-dollar. We explored different cryptos in the past and Maker is the closest solution with the asset b...

Harvest Finance: Uniswap V3 Pool Yielding 10000%+?!

19 Aug 2021 1 minute read 2 comments Cje95

Last night when I checked in on Harvest Finance to see what was up as I have been slacking recently I was shocked to see a Uniswap V3 pool yield over 10000%. The only other pool I could remember doing this recently was when Lift.Kitchen was doing so...

Read this if you are a new crypto investor

19 Aug 2021 2 minute read 0 comments Starkroyce

As you most probably know by now, cryptocurrency market is very exciting because it might be the future currency and being a part of this revolution is always interesting. However, it is considered a risky investment and some might even called it "ga...

The Importance of Decentralized Stablecoins: The Maker Protocol and the Terra Blockchain

18 Aug 2021 4 minute read 1 comment 2sats

*obligatory not financial advice* What are Stablecoins? A stablecoin is a token that is pegged to the value of a fiat currency and has the same price as its fiat counterpart. Essentially a stablecoin that is pegged to the US dollar is a tokenized dol...

Stable Coin Yield Strategy for DeFi on Polygon (Beginners - Intermediate)

18 Aug 2021 2 minute read 2 comments Budget Boy

Terms like "Price impact", "slippage", "impermanent loss", "rug pulls" etc may be daunting and overwhelming for beginners. The extremely composable nature of the space may also be frightening as users can create and execute yield generating strategie...

Harvest Finance: First Algorithmic Stablecoin Farm Added

14 Aug 2021 1 minute read 5 comments Cje95

The most recent farm added by the Harvest Finance team is the first of its kind for them thus far! The farm, the pair of WETH-zUSD, comes from a Uniswap V3 pool. This is the first algorithmic stablecoin that Harvest has added to its vast array of far...