Stablecoins list style
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Content:
- Charts, Prices, All-time Highs Terra LUNA
- Ordered list colour numbers differently
- 3. A HISTORICAL VIEW OF MAKERDAO’S ORACLE AND PRICE FEEDS
- Money Reimagined: United States of Stablecoin
- Stablecoins steal the limelight from subdued bitcoin
- Stablecoins threaten the financial system, but no one is getting to grips with them
- Keep up to date with Liquid
- $127B stablecoin industry should be regulated like banks, Treasury says
- The end: Facebook-backed digital currency Diem sold to bank
Charts, Prices, All-time Highs Terra LUNA
Also known as cryptodollars, tokenized fiat, and digital dollars, stablecoins are blockchain-based tokens that have parity with a fiat currency, usually the U. Stablecoins offer a steady anchor in the notoriously choppy waters of the crypto market, allowing value to be stored and transferred on the blockchain without exposure to wild swings in price. The most significant feature of stablecoins is their peg, which is how they maintain a stable relationship to the tied asset. Most stablecoins use one of two mechanisms to retain parity: collateral pegs and algorithmic pegs.
Popular stablecoin Tether uses the collateralized model. Each Tether is backed by a reserve fund, which holds a mixture of cash, cash equivalents, and commercial paper. This makes MakerDAO the blockchain-based equivalent of a full-reserve bank. Algorithmic stablecoins, also called algo-based coins or seigniorage-style coins, are not backed by collateral.
Instead, they aim to peg the price of a token using on-chain algorithms that increase or decrease supply according to market conditions. For example, if too many people sell an algorithmic stablecoin, its price will drop. Stablecoins are powerful tools for sophisticated investors. They can be used as a predictable and convenient passport across the blockchain ecosystem, providing access to both crypto trading opportunities and the growing range of exciting decentralized finance DeFi projects.
One of the main uses of stablecoins is to facilitate trading crypto against fiat, via futures, spot or options. On centralized exchanges, stablecoin pairs — e. On decentralized exchanges, stablecoins provide an alternative to fiat, enabling direct trading against global currencies through smart contracts. As economists know, pegged exchange rate arrangements can be fragile.
Pegs often slip on immature crypto trading platforms, and spreads of a few percentage points between the stablecoin and the peg are not uncommon. For nimble traders, this presents a lucrative opportunity. For example, a mean-reverting strategy could be used to bet that a stablecoin will revert to its peg after a bout of volatility. Alternatively, traders might use more complex arbitrage strategies. Stablecoins are increasingly being deployed in DeFi lending protocols, allowing investors to earn yield by meeting demand for loans and leverage.
Compound is one such decentralized lending protocol running on Ethereum. The Compound contract automatically matches borrowers and lenders you can see the balance between amounts borrowed and lent here and adjusts interest rates dynamically based on this demand and supply. Other popular lending dApps include Aave and Alchemix.
Similarly, stablecoins can be lent and borrowed on centralized finance CeFi platforms such as Celsius and Nexo , or margin exchanges that supply leverage to crypto market players. Aggregators like LoanScan track interest rates across DeFi protocols and CeFi platforms so holders can shop around for the best deal. Driven by the eternal search for yield, pioneering institutions are wading into DeFi to experiment with yield farming.
Also known as liquidity mining, this trading strategy takes advantage of the composability of smart contracts to place funds across multiple DeFi protocols in return for greater financial returns. For example, a trader might deposit stablecoins into Compound. In return, they would receive a crypto asset representing the deposit known as a cToken for example, cDAI. This could then be pledged elsewhere in another protocol to earn yet more yield. In addition, Compound rewards lenders with COMP tokens, which might also be lent or staked elsewhere to further maximize returns.
While cryptoassets such as bitcoin may still be too volatile for many corporate treasurers to stomach, stablecoins offer blockchain-based payment rails that can fulfil traditional treasury functions , with added flexibility and transparency. As stablecoins can be sent anywhere in the world as easily as an email and received soon afterwards , their use can significantly reduce the friction associated with sending international payments through multiple intermediaries.
Counterparty risk is also removed as blockchain-based transfers are irreversible by nature. These benefits have been recognized by the United States government which has used stablecoins to provide foreign aid.
In addition, stablecoins also offer corporate treasurers the ability to earn yield on idle assets by accessing the aforementioned earning opportunities such as lending and yield farming. Directly from the issuer, such as regulated stablecoin provider Moneyfold. Through crypto banking services like Silvergate and Signature that mint stablecoins on request. Issuing and redeeming stablecoins typically costs very little or nothing at all. Tether charges a 0.
The same is true on exchanges, where stablecoins can be exchanged with dollars at zero cost as with USDC on Coinbase , or at low cost 0. Both industry bodies , and regulators such as the Federal Reserve, are calling for greater stablecoin regulation, and we have already seen several significant milestones:. July, Recommendations are expected to be issued in coming months.
This would require stablecoin providers to obtain a banking charter and follow the relevant banking regulations in their jurisdiction. December, The Office of the Comptroller of the Currency OCC announced that banks can use stablecoins to settle financial transactions.
This laid the foundation for stablecoins to become integrated into institutional financial operations.
Although there remains a lot of skepticism and caution around digital assets in general, stablecoin volume is growing, and they look set to form one of the first stepping stones for institutions to experience this new asset class. Request stablecoin listings and stay up-to-date with Qredo on Twitter and Telegram.
The content provided in this article is for informational and discussion purposes only. The author is not endorsing any company, project, or token discussed in this article.
Stablecoins: A bitesize guide for institutional investors. Published Jul 27, By Qredo Team. What are stablecoins? How do stablecoins work? Collateralized stablecoins Popular stablecoin Tether uses the collateralized model.
How do institutional investors use stablecoins? Trading One of the main uses of stablecoins is to facilitate trading crypto against fiat, via futures, spot or options. Peg arbitrage As economists know, pegged exchange rate arrangements can be fragile. Lending Stablecoins are increasingly being deployed in DeFi lending protocols, allowing investors to earn yield by meeting demand for loans and leverage.
Yield farming Driven by the eternal search for yield, pioneering institutions are wading into DeFi to experiment with yield farming.
Treasury management While cryptoassets such as bitcoin may still be too volatile for many corporate treasurers to stomach, stablecoins offer blockchain-based payment rails that can fulfil traditional treasury functions , with added flexibility and transparency. How do investors buy stablecoins? There are several easy ways for investors and corporates to buy stablecoins: On a crypto exchange or OTC broker using fiat currency Directly from the issuer, such as regulated stablecoin provider Moneyfold Through crypto banking services like Silvergate and Signature that mint stablecoins on request Issuing and redeeming stablecoins typically costs very little or nothing at all.
What do the regulators say about stablecoins? The future of stablecoins Although there remains a lot of skepticism and caution around digital assets in general, stablecoin volume is growing, and they look set to form one of the first stepping stones for institutions to experience this new asset class.
As the Network grows, more stablecoins will be listed to meet community demand. Disclaimer The content provided in this article is for informational and discussion purposes only. More news and thought leadership from Qredo.
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Subscriber Account active since. While cryptocurrencies and the crypto ecosystem may present interesting and rewarding opportunities, many cryptocurrencies are extremely volatile. You might not want to spend a bitcoin if you think its price could increase fold within a year. Or you may not want to borrow a cryptocurrency that's value could drop after you receive the funds. Additionally, it can be difficult and costly to move money between traditional financial systems and cryptocurrency networks. As the name implies, stablecoins are cryptocurrencies that are designed to offer stability within a cryptocurrency system. They're often pegged i.
3. A HISTORICAL VIEW OF MAKERDAO’S ORACLE AND PRICE FEEDS
Stablecoins are cryptocurrencies with their values pegged to another asset. In addition, there are currently more than thirty-six exchanges and more than twenty wallets supporting BUSD, making it a reliable option for stablecoins. Stablecoins are an important crypto asset class that has been gaining popularity with traders and investors alike. One of the few stablecoins that provides monthly audits is BUSD, making it a highly regulated asset. The world of cryptocurrency is becoming more popular with each passing day. As more people around the world become acquainted with crypto assets like Bitcoin, BNB and Ethereum, other strong contenders that use different technologies are making their way into the crypto ring as well. One of the most prominent types of crypto used today are stablecoins, which are cryptocurrencies whose values are pegged to fiat currencies, such as the US dollar.
Money Reimagined: United States of Stablecoin
Support Scroll. The market seems to have benefited from the public having time on their hands during pandemic lockdowns. Also, large investment funds and banks have stepped in, not least with the recent launch of the first Bitcoin-backed exchange-traded fund — a listed fund that makes it easier for more investors to get exposure to this asset class. Like other cryptocurrencies, stablecoins move around on the same online ledger technology known as blockchains. The difference is that their value is pegged to a financial asset outside the world of crypto, usually the American dollar.
Stablecoins steal the limelight from subdued bitcoin
A useful currency should be a medium of exchange, a unit of account, and a store of value. This is where stablecoins come in. Stablecoins are price-stable cryptocurrencies, meaning the market price of a stablecoin is pegged to another stable asset, like the US dollar. Bitcoin and Ether are the two dominant cryptocurrencies, but their prices are volatile. Cryptocurrency volatility also precludes blockchain-based loans, derivatives, prediction markets, and other longer-term smart contracts that require price stability.
Stablecoins threaten the financial system, but no one is getting to grips with them
This week money app Finder announced it would offer stablecoins in exchange for Australian dollars , promising a 4 per cent return for each coin. Louie Douvis. But because crypto markets can be very volatile and are sometimes subject to wild price swings, investors often need to exit those markets quickly. The problem is that bitcoin and ether themselves are often very volatile digital assets. Swapping back again into steady, reliable Australian dollars to wait for another opportunity would be one way to negate the volatility of digital assets, but there are several reasons investors try to avoid this. Many digital asset transactions occur more than one place away from a crypto-to-fiat-currency trade.
Keep up to date with Liquid
Koosha Azim is an entrepreneur, writer, and artist known for his work in the blockchain industry. His research focuses on how stablecoins and tokenization enable new assets, services, and institutions to evolve in the decentralized space. He was born and raised in the Silicon Valley and has been involved in the cryptocurrency field since
$127B stablecoin industry should be regulated like banks, Treasury says
Cryptocurrency has been a never-ending topic among investors. The past few years have seen many people make the decision to not just learn the trade but also invest their money in this sphere. Perhaps the main reason the crypto world is attracting new investors every day is because of the returns it promises to give. However, was a wild ride for all crypto traders. The industry saw the highest prices and devastating lows within the same year.
The end: Facebook-backed digital currency Diem sold to bank
Stablecoins are gaining popularity in the recent years. In certain countries like Brazil, people are preferring stable coins to their national currencies. That is during uncertain economic conditions. What are Stablecoins? Stablecoins are a new group of cryptocurrencies.
If you are new to the world of cryptocurrency, you might have been hearing the term stablecoin and wondering what it actually means. Well, stablecoin is not really a term, it is another form of currency in the crypto world. However, these currencies are a bit different from the regular cryptocurrencies you know, such as Bitcoin, Ethereum, Dogecoin , etc.
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