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.


Stablecoin Yields

8 Jun 2021 1 minute read 0 comments BeeHoward

Stablecoins are an essential part of a crypto investor's portfolio. HODLing and Diamond hands are part of the game, but every now and then profits have to be taken out. Or if you have a lower risk appetite, you could keep a higher share of portfolio...

What Is A Stablecoin?

8 Jun 2021 3 minute read 0 comments Heath Muchena

Stablecoins provide their holders with special features, functions and protections that wouldn’t have been available to them if they would rather hold the underlying fiat currency or assets backing the stablecoins. Over the last few years, the world...

StableBCH - First dividend earning SLP Stable Token under Bitcoin Cash Blockchain

7 Jun 2021 2 minute read 0 comments Sankar Srinivasan

StableBCH StableBCH is crypto backed stable token, created in Simple Ledger Protocol under Bitcoin Cash Blockchain. Each token costs 0.00000001 BCH. StableBCH earns dividend in same token. StableBCH : Crypto backed Stable SLP Token StableBCH is a...

HOW THE RESERVE RIGHT TOKEN & STABLE COINS CAN HELP EMERGENT ECONOMIES TO COUNTER HIGH INFLATION?

5 Jun 2021 4 minute read 0 comments Scario

  How to fight against inflation and support Emerging Markets Many fiat currencies lose their value as quickly as cryptocurrencies, dropping potentially in value 20-99% per year. Unfortunately, this is exactly what happens to the fiat currencies of m...

Bitcoin, Ethereum & Co. - Are those money of the future?

5 Jun 2021 2 minute read 2 comments SimoCo91

Cryptocurrencies have been on the lips of many people for some time now. It is rumoured that cryptocurrency, especially the better-known ones like Bitcoin and Ethereum, are the future of finance and will replace current money. In theory, it would be...

Yearn Finance Vaults Explained

2 Jun 2021 3 minute read 3 comments RelyOnCrypto

Before we get started, if you're new to Yearn Finance and need a recap, check out my previous article here.   Yearn vaults are funds that are pooled together with a plan for maximizing the value of the asset in the vault. Vault strategies are more ac...

Crypto Market Hit With Widespreads Loses Of Some Over 20% As US Stablecoins Remain Dominant

28 May 2021 3 minute read 1 comment Vendata

After appearing in a strong recovery run, the crypto market becomes hit with a widespread loss of almost every cryptocurrency, a decent number of cryptocurrencies facing losses of over 20% over the past 24 hours while the US stablecoins still stay st...

CageChain Newsletter #162 | DeFi App Conference, ADA in Africa, "MATIC" Mark, Future of Stablecoin, Green NFTs on Tezos and More...

28 May 2021 2 minute read 0 comments KHubbard

Countries in Africa have always been early adopters when it comes to financial technology. Emerging tech has been at the forefront of major solutions across the continent and Cardano has big plans for the region. Billionaire investor Mark Cuban has...

Stable Coins: Perhaps they can be a driving force for DeFi

27 May 2021 2 minute read 1 comment MikeZillo

DeFi (Decentralized Finance) has started to move large volumes of money. First the various crypto loans started, the AAve project is the example and it has been followed by a variety of projects along the same lines. After that, financial products ha...

How to get some solid returns on your stable coins with IRON Finance on the Polygon Network

26 May 2021 2 minute read 0 comments n1ce

There is a chance, with the current crash happening, you have some of your reserves in US Dollar stable coins. This could be a good opportunity to let your money work for you. One way to do that is to provide liquidity for a protocol. This means addi...