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.
Analysis
The development of enterprise DeFi use cases is underway, but mainstream adoption may take longer than expected.
Supply chains reimagined: Enterprise DeFi finances personal protective equipment
Rachel Wolfson
2021-05-15T14:07:00+01:00
9907
News
Cash, cash equivalents, other short-term deposits and commercial paper make up 75.85% of Tether’s proven reserves as of March 31.
Tether discloses full reserve breakdown for the first time
Sam Bourgi
2021-05-13T19:20:00+01:00
16193
News
Facebook-initiated Diem Association announces a new model of its upcoming stablecoin that is set to be issued by California state-chartered bank Silvergate.
Diem parters with Silvergate bank to launch stablecoin in the US
Helen Partz
2021-05-13T08:26:28+01:00
15341
News
“UNI is in an excellent position to be a token for such an oracle,” said Buterin, in reference to decentralized pricing oracles for stablecoins.
Vitalik Buterin says Uniswap should become an oracle token
Sam Bourgi
2021-05-12T18:00:00+01:00
17970
Expert Take
A close look at the policy issues relating to the potential impact of stablecoins on financial systems and economies around the world.
Stablecoins present new dilemmas for regulators as mass adoption looms
Agata Ferreira
2021-05-09T14:12:00+01:00
18588
Analysis
Declaring BTC a store of value — e.g., gold 2.0 — but not a medium of exchange, defies logic. It must first have a use case.
As Bitcoin’s payment options grow, BTC true future role up for debate
Andrew Singer
2021-05-08T14:34:00+01:00
26942
News
Stablecoins, IOU tokens, and future incentive programs are coming down the pipe for jilted investors.
Reeling from post-hack price slump, Easyfi reveals community compensation plan
Andrew Thurman
2021-05-07T23:44:18+01:00
49520
Altcoin Watch
Real-world adoption and a growing DeFi ecosystem help lift the price of WAVES to a new all-time high.
WAVES price swells to new all-time highs, nearing $4B market cap
Jordan Finneseth
2021-05-04T09:23:36+01:00
24456

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