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.


Tether blocks another $ 1.58 million in USDT on Ethereum blockchain

12 Jul 2020 1 minute read 0 comments Kluma

The number of Tether blacklisted addresses with USDT using the ERC-20 protocol has reached forty, according to Dune Analytics . On July 10, the stablecoin issuer froze a $ 1.58 million wallet with assets.   Dune Analytics was launched by Ethere...

The Most Critical Vulnerability in DeFi, that nobody talks about.

12 Jul 2020 1 minute read 0 comments lioha369

Returning to the topic of stable coin account freeze, despite all the technical and price risks that arise when using decentralized financial protocols (DeFi), DeFi has one very serious vulnerability that nobody speaks directly. The idea is that the...

Is Tether (USDT) in trouble? New York Court Approves Investigation!

12 Jul 2020 2 minute read 2 comments PVMihalache

Tether is a stablecoin specifically designed to build the necessary bridge between fiat currencies and cryptocurrencies and offer stability, transparency and minimal transaction charges to users, maintaining a 1-to-1 ratio with the U.S. dollar in ter...

FATF expresses concern over growing stablecoins

12 Jul 2020 1 minute read 0 comments Kluma

The Anti-Money Laundering Financial Action Task Force (FATF) presented a report on stablecoins. Its leitmotif was the potential for the massive introduction of “stable” coins and the need for issuers and cryptocurrency exchanges to follow the organiz...

Paxos Standard: Another BEST StableCoin

11 Jul 2020 2 minute read 0 comments Mr_SauravKT

Well, jumping into another one of the best stablecoins of the crypto era, we’ll talk about the Paxos Standard (PAX). On the 10th of September 2018, a New York-based Regulated company with Blockchain expertise Paxos Trust, LLC introduced a new stablec...

StableCoin : What's The Buzz with Stablecoins and Algorand

10 Jul 2020 12 minute read 17 comments Andrzej_0xa0

Over the past months and weeks, we've learned about two major stablecoins that will be migrating to Algorand blockchain (USDC, USDT). February 2020, Tether (the largest stablecoin by market cap) announced integration with Algorand platform , and a fe...

Stablecoin Provider Blacklist an Address with $100K USDC

9 Jul 2020 1 minute read 4 comments Abhimanyu Krishnan

Stablecoin provider CENTRE has blacklisted an address holding $100,000 USD Coin (USDC), the address data reveals. The blacklist function was called on June 16, 2020, using an address owned by CENTRE. Speaking to The Block, a spokesperson for CENTRE c...

Staking stablecoins and PoS coins: which is safer and more profitable?

9 Jul 2020 6 minute read 0 comments Kluma

As part of the launch of the first USD Neutrino  stablecoin, John Voronin, advisor and product consultant for the WAVES․Exchange multifunctional crypto exchange, analyzed and compared the stability indicators of stablecoins and conventional PoS crypt...

DeFi Major Functions

8 Jul 2020 2 minute read 0 comments CoinSteps

Decentralized Finance, most widely known as DeFi for short, is one of the hottest topics in the crypto space. There is a high possibility you already know what Defi is and its uses. Briefly the idea behind it is to take banks and governments and let...

Y Combinator And Coinbase Venture Are Investing In This Unpopular Cryptocurrency

3 Jul 2020 1 minute read 0 comments Ashma

Multiple crypto ventures are backing newly born projects with millions of dollars and now the race for stablecoins is getting really dramatic. In the past few days we've seen that the Tether (USDT), a stablecoin has crossed the precious amount of tot...