Exploring Stablecoins
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Exploring Stablecoins
A stablecoin is a digital currency created with the intent of holding a stable value. The value of most existing stablecoins is tied directly to a predetermined fiat currency or tangible commodity. However, stablecoins can also achieve price-stability through collateralization against other cryptocurrencies or algorithmic token supply management.
Jay Drain Jr • Web3 Starter Pack
Tether (USDT) was one of the first centralized stablecoins to be introduced. Every USDT is supposedly backed by $1 in the issuer’s bank account. However, one major downside to USDT is that users need to trust that the USD reserves are fully collateralized and actually exist.
Sze Jin Teh • How to DeFi: Beginner
The most important design choices in the engineering process of protocol tokens and application tokens are related to questions of security, scalability, level of decentralization and privacy of the blockchain infrastructure they chose to use.
Shermin Voshmgir • Token Economy: Money, NFTs & DeFi
At the same time, however, native tokens are exposed to general market volatilities and are not immune to strong sell-offs during bear markets. It is in such circumstances that the daily operations and functionality of a DAO can be disrupted due to the lack of cash reserves for its regular funding. Partially compensating a core group of team member... See more
A Fresh Look At DAOs – The New (Digital) Family Offices - GCR
Tether (USDT) pegs itself to $1 by maintaining reserves of $1 per Tether token minted. While Tether is the largest and most widely used USD stablecoin with daily trading volumes averaging approximately $113 billion in March 2021, Tether reserves are kept in financial institutions with little oversight, thus users will have to trust Tether as an ent
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