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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.
22 Apr 2022 1 minute read 0 comments Steve Hodl
The saying that a millionaire is built 10 bucks at a time was made famous by the frugal guru Mr Money Moustache. He famously said that 10 bucks is a lot of money. And the reason why is because of the power of thinking big. You need to respect each $1...
21 Apr 2022 1 minute read 0 comments FreedomBuilder
🎁 Total Reward Pool: 250,000 $LPFi to the community pre-launch! ⚡️ LPFi Total Supply: 50,000,000 LPFi ➕ Additional Information:📌 Users can earn interest on collateral while borrow interest-free.📌 Advancing LP Finance's Collateral Backed Stable...
21 Apr 2022 5 minute read 0 comments Greenchic
Visit of the cuddle kitten signaled that it's time for another cat post!! Cuddle Kitten's kind visits accompanied by upvotes on my mom's blog post about decentralised stablecoin terraUSD fading away Dai's existense When ever, cuddle kitten v...
20 Apr 2022 5 minute read 0 comments Cje95
It is now common to see different crypto startups raising millions of dollars at a time. However, what is much rarer to see is crypto make headlines when it only raised $2 million USD. That though was the headline that a new protocol called Volt had...
20 Apr 2022 2 minute read 0 comments kev_nag
Introduction On April 18, 2022, Beanstalk Farms, a credit-based stablecoin protocol, reported suffering an exploit where the platform had $76 Million stolen from it. While not of the magnitude of some of the exploits we have seen, nonetheless, $76 Mi...
20 Apr 2022 2 minute read 1 comment Michael @ CryptoEQ
If you want more cryptocurrency analysis including full-length research reports, trading signals, and social media sentiment analysis, use the code "Publish0x" when subscribing to CryptoEQ.io to make your first month of CryptoEQ just $10! Or simply...
19 Apr 2022 5 minute read 0 comments Mike Ermolaev
Checkout.com, the leading payment solutions provider, has released the Demystifying Crypto report highlighting an outlook for the adoption of crypto payments in 2022. The report provides by far comprehensive insight as it reveals the results of surve...
19 Apr 2022 4 minute read 3 comments Cje95
A few weeks ago the Wall Street Journal reported that some hedge funds had previously taken positions shorting Tether. Since Tether has a rather complex and at some times controversial past this is not the most surprising thing. Tether has never real...
18 Apr 2022 1 minute read 3 comments Steve Hodl
In stock market investing, only the likes of Warren Buffet have managed to consistently achieve Alpha and outperform the S&P Index. Most active investors usually try to beat the returns by investing in a growth strategy, this is usually tech stocks o...
17 Apr 2022 2 minute read 0 comments R23
Over the last few days, there has been a ton going on in the Hive ecosystem relating to the Hive-Backed Dollar. First we saw the witnesses boost the interest on savings percentage to 20% and then we saw the @leofinance team drop a huge new farm...
