, 3 years ago
Cryptocurrencies are highly volatile, which offers great opportunities for trading. Still, sometimes you would like to preserve the value and don’t want to risk any up-or downside. What are stablecoins and what do they have to offer?
Stablecoins offer a lot more options then regular currencies. They can be stored and transferred peer-to-peer just like regular crypto. At the same time, they represent the stable value of the underlying asset. For one instance, one USDT is backed by one real US-Dollar held by the company Tether.
But there are also different and decentralized stablecoins that don’t require a trusted third party. Maker DAO and the stablecoin DAI is such an example, but also Heaven Protocol and its assets like xUSD, xGold or xSilver.
These examples show that the underlying assets doesn’t have to be necessarily a fiat currency, but can also be a commodity as well. Aside from these qualities most stablecoins share the following features:
With these features stablecoins are most suitable to settle payments without risking any loses due to volatility. They also have a very important role in decentralized finance applications, since they can represent different assets.
This way it is possible to use Bitcoin with a stablecoin like WBTC and lock it into a liquidity pool for yield farming, for instance. It allows to hold BTC, while at the same time interacting with the Ethereum blockchain and one of its many DeFi protocols.
Another option is to use stablecoins for trading, because they represent the value of the US-Dollar or Euro. They become faster available to traders than a traditional wire transaction.
Apr 11, 2023
Shiba Inu (SHIB) is still one of the most important meme coins in the crypto ecosystem. Dogecoin is indeed the mother of all meme coins and tokens. One could argue that SHIB is just another copy, but there is more to it. It is building its own unique DeFi ecosystem that is meant to create more value in terms of Dollars as well as user experience. This puts Shiba Inu in a special place when comparing it to other meme tokens that have no or less ambitious plans.
Apr 01, 2023
How can we trust data if we don't want to place our trust in a single authority? And how can these data be accessed by on-chain applications? Chainlink was invented to solve these problems. What Bitcoin does for money, this blockchain network wants to achieve for data.
Jan 30, 2023
What better use for blockchain technology than supply chains? Both are chains, right? Maybe that’s what the VeChain team thought to themselves when they launched in 2015. All jokes aside, the company has made strides in creating a platform for the currently siloed space of supply chain data for businesses.
Jan 18, 2023
ApeCoin is the currency of choice of the Bored Apes Yacht Club ecosystem, which includes the Otherside open metaverse. Not to be confused with the Bored Ape NFT's, investing in ApeCoin the currency is a bet on the ecosystem developed by parent company Yuga Labs, considered by some the Disney of the metaverse.
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