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.


Buying your house with cryptocurrencies, is that possible?

7 Jun 2020 2 minute read 2 comments Galaxie Crypto

And yes it is possible, and it offers you some advantages.   In 2019, the purchase of real estate was made popular in Australia thanks to a major advertising campaign. This media sale took place in Brisbane. Since then several sales of houses or apar...

This Is How I Get 12% APY On Stablecoins (And How You Can Do It Too)

6 Jun 2020 6 minute read 46 comments walkonwayvs

What's good Publish0x fam. In an article that I wrote a few weeks ago I gave away a hint that I am getting 12% APR on my DAI savings account. Oh yeah baby, 12%. This article will tell you everything you need to know about how you can get top notch in...

DAI coin: The Good, The Bad, The Ugly

6 Jun 2020 3 minute read 0 comments Cryptohem

One of the biggest loophole in cryptocurrency is their highly volatile nature. Where their value are not stable and need frequent prediction. This problem is solved by the so called stablecoin and DAI is one of the most popular stable coin ever exist...

What Are Stablecoins

4 Jun 2020 3 minute read 5 comments CryptoSorted

What are Stablecoins and how are they different from other cryptocurrencies? One of the major criticisms of bitcoin and other cryptocurrencies (NOT Stablecoins) is that their price is extremely volatile. Most cryptocurrencies could see price fluctuat...

The great advantages of acquiring DAI in devalued countries - the most relevant in DeFi, stablecoins and DAI

3 Jun 2020 8 minute read 0 comments Crypto adict (Manu VZ)

Crypto-backed stablecoins is that they are over-guaranteed. It means that for every Dollar in circulation of a stablecoin of this type, there is more than 1 Dollar that supports it. For example, DAI currently has $ 3.80 in support for each DAI in cir...

Coinbase Decreases Interest for USDC Holders by 88%

3 Jun 2020 1 minute read 2 comments Abhi K

US-based exchange Coinbase on June 2 emailed its users that it would be decreasing the interest rate for its stablecoin USD Coin (USDC) from an annual yield of 1.25% to 0.15% - an 88% drop in return rates for holders. Saying that they periodically as...

What happens to your stablecoin in case of negative interest rate?

1 Jun 2020 4 minute read 16 comments paragism

Cover Image Source – Modified The negative interest rate is a very recent phenomenon. The European central bank (ECB) adopted negative interest rate in 2014 to address the eurozone crisis. They made deposit rate (-) 0.1% that time. At present, ECB ha...

PegNet - What is it and what does it do?

1 Jun 2020 5 minute read 0 comments recourier

So what is PegNet?  Reading the PegNet webpage they dub themselves as the stablecoin network for Decentralized Finance.  It goes on to say that PegNet functions as a state channel on Ethereum dedicated to stablecoin prices, conversions and transfers....

How to Buy Stablecoins in Canada

31 May 2020 2 minute read 2 comments cryptoforcanadians

If you're Canadian, then you know just how difficult it can be to find a solid crypto exchange in Canada. The exchanges in Canada all lack a lot of things or features that good exchanges have. Some of these include lots of volume, low trading fees, a...

The unstoppable rise of Stablecoins

28 May 2020 5 minute read 7 comments PKcrypto

The cryptocurrency space has seen a huge expansion of stablecoins in the past year. Almost 60 different projects are currently live and many more are being created. This week, the value of assets for all stablecoins surpassed $10 billion for the firs...