1,342 Articles 57 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.
11 May 2022 2 minute read 1 comment Bfab
Hopefully you have not invested your life savings into UST. At this time of writing, its value USD 0.44... Which is obviously 56% below its theoritical value. The reasons why it lost its peg from USD have already been explained. However, you may wond...
11 May 2022 4 minute read 0 comments FATExDAO
11 May 2022 3 minute read 5 comments Zacharias
11 May 2022: In what will be known as one of the most historical, dark days in the entire cryptocurrency space, Terra’s stablecoin UST and complementary LUNA token have completely collapsed after UST depegged. UST is a dollar-pegged stablecoin that...
11 May 2022 1 minute read 3 comments LeftFooted
What just happened with UST is a disgrace. Something that shouldn't have happened just happened. You can bet your last hard-earned penny that this will be used by crypto critics to slam stablecoins as well. "There's nothing stable about them", I hear...
11 May 2022 2 minute read 6 comments Patch
There has been a lot of news in the recent days regarding Stablecoins. The biggest was no doubt how UST have diverted from its $1 prize peg and dropped down to $0.91 on May 9th. This in term reeked havoc on Luna who dropped by who dropped by 30%. But...
11 May 2022 3 minute read 3 comments 0xVince
Over $5 Billion of deposits in the Anchor protocol vanished (5/9) as the Terra algorithmic stablecoin UST lost its pegging to the US Dollar (USD). The value of the deposits fell from $14 Billion to $8.7 Billion, as holders pulled out their UST from t...
10 May 2022 1 minute read 0 comments Steve Hodl
With Bitcoin soon to capitulate the $30k mark, it will open up possibilities of reaching sub $20k. Many large Bitcoin whales have been circling the exchanges providing extra BTC liquidity. Some are sitting on large gains and could be taking profits....
8 May 2022 2 minute read 0 comments Steve Hodl
It is well known among stockmarket index investors to often say "What would John Bogle do?" when it comes to any type of investment. This is why index investors often get called Bogleheads. John Bogle is a famous American investor who founded the wor...
5 May 2022 1 minute read 7 comments Steve Hodl
As part of my journey on Hive to build 2ETH per month of crypto income, HBD will start to play a big role in that. Today I reached the first milestone of 100HBD after making a transfer to my savings. This is HBD that I have earned through Hive...
2 May 2022 4 minute read 1 comment insidetrader
With the introduction of crypto-assets into the world’s financial system, the value behind all the cryptos have determined against the US Dollar. Even today, we all check our crypto portfolio in USD or the local currency where we belong. It’s quite r...
