, 2 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.
The short answer is no. While LiteBit credits offer you a very convenient and fast trading experience they are serving a similar purpose, but they are not representing the Euro. They are also only available on our trading platform.
Unlike a stablecoin they cannot be transferred or redeemed. Instead they can be sold for or bought with Euros or crypto like Bitcoin. As the name suggests, they serve simply as store credit and are not to be confused with existing stablecoin solutions.
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.
Jan 10, 2023
Convex Finance lets Curve’s liquidity providers and Curve stakers earn more rewards. Curve Finance is a decentralized exchange (dex) that focuses on stablecoin swapping.
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