Stablecoin News

One of the hindrances to mainstream cryptocurrency adoption is price volatility, as these assets are freely traded in the open market without central administrators tasked with maintaining price stability. The anticipation of potential losses and gains has hindered cryptocurrency’s use as a medium of exchange. Stablecoins, however, are cryptocurrencies designed to maintain a stable value over time, making them ideal for commercial transactions. 

The introduction of stablecoins in the cryptocurrency market ushered in a new wave of liquidity, as exchanges were able to provide trading pairs with tokens representing traditional fiat currencies. 

Stablecoin design takes many different forms, each with its own tradeoffs: 

  • Reserve-backed stablecoins: Cryptocurrencies pegged to the value of a fiat currency held in reserve by a company or consortium. E.g., Tether (USDT), USD Coin (USDC) and Paxos Standard (PAX). 
  • Collateralized stablecoins: Tokens backed by other cryptocurrencies that retain a one-to-one value with a fiat currency through over-collateralization to absorb potential volatility of the underlying assets. E.g., Dai and BitUSD. 
  • Algorithmic (seigniorage supply) stablecoins: Rather than using a reserve or collateralization to maintain a stable value, these stablecoins are facilitated through an automated expansion and contraction of the monetary supply, emulating the role of central banks in the fiat economy. E.g., Basis.
Beanstalk Farms’ stablecoin protocol was relaunched on Saturday, with the team working to hopefully reclaim the $100 million market cap of its BEAN stablecoin p...
Once hacked for $77M, Beanstalk’s algo stablecoin protocol relaunches
Brian Quarmby
Speaking at the BUIDL Asia event in Korea, Vitalik Buterin said that centralized stablecoins like USDC & USDT will become significant deciders in future hard fo...
Vitalik: Centralized USDC could decide the future of contentious ETH hard forks
Tom Mitchelhill
An innovation on the Bitcoin Lightning Network (LN) could shelter users from the price volatility of BTC by providing access to dollars.
Dollars on the Lightning Network: A boon for emerging markets?
Joseph Hall
A Waves proposal that aims to solve the liquidity problem of Vires.Finance has passed after gaining the support of its community.
Waves community backs DeFi revival plan for Vires.Finance
Ezra Reguerra
The financial regulator admits it’s high time to shift the focus from the KYC/AML issues to more nuanced risks, poised by stablecoins.
Singaporean financial watchdog to consult public on stablecoin regulation
David Attlee
The Tether printers have been fired up again as the USDT circulating supply has started to tick up.
Tether supply starts to increase after three-month decline
Martin Young
Aave’s stablecoin approval drew wild reactions from the crypto community, with many comparing its fate to TerraUSD while defenders pointed out its overcollatera...
Aave DAO approving overcollateralized stablecoin splits crypto community
Prashant Jha
Tether said the hedge funds that shorted its stablecoin after Terra's collapse have “a fundamental misunderstanding of both the cryptocurrency market and Tether...
Tether calls thesis behind USDT short-selling ‘flat out wrong’
Brian Newar

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