Topic: Stablecoins - page 2. (Read 355 times)

"If it looks like a duck, swims like a duck, and quacks like a duck, then it probably is a duck."

Exactly. You want a wallet with an exchange feature, then it's still considered an exchange.

Pro tip: If you really want your users to be able to exchange their coins without the need of having an actual exchange, probably just add a referral link that redirects to whatever exchange you prefer to link to(probably a non-custodial?). Some exchanges even allows integrating an API so your users wouldn't even need to move out of the app.

That would not possible OP. It cannot be done to have a stable coin paired by bitcoin enables you to buy more btc when btc market price drops with the same money you bought to that stable coin. It is very confusing and you only just thought of a price drop from btc. What if btc starts to increase it market price? What happen to your stable coins or your btc bought? Imagine a disaster? That would probably your stable coin you like to create.

Cryptocurrency were being back already with dollars or reserves like golds. The moment one like to acquire a certain coin definitely buying it would be more easy and that money use to buy will be put to reserve as it will be return to you when you sell the coin back.

So how could you earn in cryptocurrency?

It will depend on your patients or the market. If the coin you brought make a price increase then you can sell your coin and make a profit. Just remember that the market price of a coin depend on the demand and supply. The higher the demand for that coin then the higher market price it could have. This is why most of the coin has been used as an exchage for services and to buy products to which it could create higher demand from the consumers of that said products and services. That coin will have a significant market price increase with the demand from the consumers and vice versa if there is no demand for that coin its market price also significantly drop which could make you some losses depending on your patience or attitude towards the market of the coin you buy.

This is why bitcoin would be the most appropriate coin to start with when one would like to earn. Others could hold it for a month and then sell and others also could hold it for a month and sell just depending on the market. It could also mean losses or gain depending on the attitude of the holder.

There is no shortcut.
One of the qualities of a good exchange especially an instant exchange is to have enough reserve assets Both in BTC and USD stablecoin in this case.

A part from just the token, You must have the reserve value of the stable coin in actual US Dollar in order for this to work otherwise you will be in very serious trouble with authorities such as SEC. The reserve should also be huge in order to be able to mint more stablecoin tokens whenever need arises.

If this was easy to pull off, we would be having so many legit exchanges of this sort.

You're creating an exchange any time you offer any type of trade. It doesn't matter where it takes place.

Why would anyone trust a coin magicked up out of thin air by a total unknown? The stablecoins that have accountable heavyweights backing them and real backing are toxic enough.

100% not 50%

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This stable coin is a scam. You cannot create money out of thin air.
Your stable coins must be backed by your reserves.
In simple words, when you issue 1000 dollar worth of stable coins, you must keep 1000 real dollar in reserve.

Hello

I have a question about stablecoins and how they work.

Say I want to build a crypto wallet. Now, it's not an exchange, it's a wallet, but I want to give my users the ability to trade it in-wallet.

Here's where a stablecoins comes in. Now, presume he sells $1,000 worth of BTC for a stablecoin that I issue. The stablecoin is $1. Now assume the price of BTC drops by 50%.
That means, he can buy 50% more satoshis with the same $1,000, but since I don't have any BTC reserves, how can guarantee the "stableness" of the coin?

Are there any solutions to this such as offshoring this a decentralized exchange?

Thanks!