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.


The blooming popularity of Stable Coins in Contemporary times

27 Apr 2020 2 minute read 0 comments Greenchic

   Increase in Stable Coin holdings these in recent months Since the past few months, there has been an increase in demand and market capitalisation of stable coins - Tether (USDT), USDC, TrueUSD(TUSD) and Paxos Standard (PAX). These dollar pegged d...

MONEY ON CHAIN PLATFORM - UNLOCKING THE FULL BENEFITS OF DeFi

24 Apr 2020 1 minute read 0 comments depedro

Over the years, the global financial system has further grown weaker, in the passing of days owing to the inefficiencies in its performance. It is slow, centralized, expensive and lacks the necessary tools needed to efficiently cushion the ever-grow...

Stablecoin Could Be Regularized (FSB Rules)

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

For once the problem isn't Bitcoin or Ethereum, according to the F̷i̷n̷a̷n̷c̷i̷a̷l̷ S̷t̷a̷b̷i̷l̷i̷t̷y̷ B̷o̷a̷r̷d̷, 🆂🆃🅰🅱🅻🅴🅲🅾🅸🅽🆂 should be regularized.The five largest stablecoins for 65% for all trading volume, despite representing less than 4% of the...

Curate Bitcoin 04/21/2020 by dobobs

22 Apr 2020 6 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...

Atomic Loans Raises Millions to Bring Bitcoin to DeFi

21 Apr 2020 1 minute read 2 comments DefiMoon

One of the big stories in defi last week was Atomic Loan's seed round of $2.45 million to bridge the gap between bitcoin and the decentralized finance movement taking place on ethereum. Some big names were involved in the seed round: Initialized (),...

DAI hasn't recovered its $1 peg since Black Thursday

21 Apr 2020 1 minute read 0 comments DefiMoon

Despite numerous attempts by MakerDAO voters (lowering the stability fee to 0.5% on all collateral coins, adding USDC as collateral to the system) the DAI stablecoins has been trading above $1 since Black Thursday (March 12). https://dai.stablecoin....

Each stablecoin seems to be finding its own niche on ethereum

19 Apr 2020 1 minute read 0 comments DefiMoon

This beautiful graphic was released today by Flipside Crypto and I'm fascinated by it. The key takeaways for me here is the clear division between centralized and decentralized finance camps. It's clear that USDT is the proffered stablecoin of choice...

50-Member Celo Alliance has emerged as a Libra competitor

18 Apr 2020 3 minute read 0 comments fklivestolearn

The open-source blockchain platform for prosperity has the backing of some Libra association members     Currently at a test net stage dubbed as “Baklava”, the Celo foundation’s alliance for prosperity aims to provide digital financial services to an...

After 9 Months of Near Silence, Facebook Offers a Huge Update on Libra Project

17 Apr 2020 1 minute read 26 comments Abhi K

On April 16, the co-creator and board member of Facebook’s Libra project, David Marcus, has published a series of tweets that gives an update on the project, which has endured months of silence and doubt since its original announcement.  Saying that...

Curate Bitcoin 04/16/2020 by dobobs

17 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 Price S...