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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.
23 Dec 2021 2 minute read 0 comments Crypto Guys
Cryptocurrency has become a major asset portfolio of this decade. According to a report on CNBC, more than 70% of millennial millionaires are holding their assets in crypto. Today, there is an avalanche of crypto trading platforms, but they all seem...
19 Dec 2021 3 minute read 3 comments 2sats
*obligatory not financial advice* What is Celo? Celo is a smart contract blockchain that enables smart phone users to become their own bank. There are many people in poorer countries that do have smart phones but no access to a trustworthy bank, Ce...
17 Dec 2021 1 minute read 4 comments LeftFooted
I'm assuming that y'all, just like me, check your dashboard pretty often and that's how you know the $ countervalue of what you have (in AMPL and FARM) has been going down consistently for a couple of days. Now, that's fine with Harvest Finance (FARM...
13 Dec 2021 2 minute read 0 comments FATExDAO
A summary status update on FATExDAO & DEX Excerpts from our Green Paper FATExDEX v2 on the way… FATExDAO & its DEX/Dapp was never intended to just be a fork yield-farm/dex in the traditional sense: It is a depository for members digital assets and...
13 Dec 2021 5 minute read 4 comments ssaurel
In the Bitcoin world, you often hear about flippening. For newcomers, this is when Bitcoin's market cap will exceed gold's market cap. To give you an idea of how far we have to go, Bitcoin's market cap is currently $947B, while gold's market cap is $...
11 Dec 2021 5 minute read 0 comments FATExDAO
Algo-Stabilized Collateralized-Commodity Denomination, One-Peg Systems are Smart Stablecoins are seemingly better than any coin that is named after a restaurant menu item, animal(s) or a mythical-to-the-moon-meme token. Although these cryptocurrenci...
7 Dec 2021 4 minute read 1 comment DMoneyCanada
This past weekend was pretty rough for the Crypto markets, with Bitcoin dropping to as low as $42k before bouncing back, potentially over the Fed’s likely decision to increase tapering and raise interest rates next year. For many, myself included, it...
7 Dec 2021 3 minute read 0 comments lordneroo
Back to the hustle. I'm currently enjoying some days off, which means it's the perfect opportunity to get back to my online poker grind and bag some easy profits. The micro stakes are my best bet, as I rarely ever get to face equally experienced op...
7 Dec 2021 1 minute read 5 comments LeftFooted
It’s a question I’m asking… myself. The first thing I thought when I first learnt about the existence of Ampleforth was, “that’s a cool name”. It sounds like a castle in Scotland, or an old liqueur. “Yeah, I’ll have an Ampleforth and Tonic, please”....
1 Dec 2021 3 minute read 0 comments kev_nag
***INTRODUCTION*** With traditional financial institutions paying basically nothing on interest accounts and world governments threatening regulation of fiat backed stablecoins, the average investor needs a break. And the needed break is here - the H...
