Topic: What is a stablecoin? (Read 1030 times)

the term Stablecoin coin which is specifically made as a crypto of high volatility. Stablecoin crypto has stable characteristics, making it suitable for use as a value storage unit, especially in the short or medium term. Stable coins have become popular in the past two years, and the digital currency (USDT) issued by the Omni Layer protocol is a phenomenon.

Stablecoin is a coin specifically created as high-volatility crypto. Stablecoin crypto has stable characteristics, making it suitable for use as a value storage unit, mainly in the short or medium term.

Let me introduce a new stablecoin, USDX. Like Havven, our project features two coins: one, LHT, is exposed to the volatile market and therefore has volatile price. The other, USDX, is pegged to the U.S. Dollar and has a stable price. Unlike Havven, the transactions inside our system are fee-free. We only plan to charge merchants in the future, when the USDX currency and USDX Wallet app will have a prominent user base. Not sure if I can post a link to the website, so if you want see more info, just make a search by "USDX Wallet" phrase, and you'll find both a website and our app, which is already available at the App Store and Google Play.

As I understand this definition has been designed to describe coins, which are more or less stable but I don't know whether it is possible to design a coin that really will be immune to the market fluctuations

ether and btc remain the most stable coins to date, because both coins require a long time to experience price increases.
I feel the slowness of price changes on the two coins, and is relatively stable for me.

The term stablecoin refers to any cryptocurrency coin or token pegged to an asset with a relatively stable price, such as fiat currencies or gold. A stablecoin can be under control of a central entity, such as Tether (USDT), or a Decentralized Autonomous Organization (DAO), such as Dai, a stablecoin which is issued on the Ethereum network. Nubits is another stablecoin which is partly controlled by a DAO, but is also under control by a central authority, representing a hybrid issuance model.

Full guide about stablecoins https://www.cointelligence.com/content/stablecoins-guide/

I think that the current cryptocurrency must become a stable currency, must be recognized by the government, and a large number of investors must use it.

I did not expect a stable coin in this market, when I joined I was aware of that. And here is where I can make quick money, even USDT can not stabilize if a day like the Wex USD

 Hello everybody! More positive big news "today Circle https://www.circle.com and the CENTRE open source consortium introduced a service to tokenize US dollars and use those dollars over public blockchains on the internet: USD//Coin, also known as USDC. Individuals and institutions can enroll in this service to deposit US dollars from bank accounts, convert those dollars into tokens usable everywhere the internet reaches (subject to the token’s compliance controls), and redeem USDC tokens and cash out to bank accounts." More information read on Official Blog: https://blog.circle.com/2018/09/26/introducing-usd-coin

in a decentralized world stability is hard to get

Tether and DAI are getting some competition. This time it's GUSD stablecoin by Gemeni (aka Gemini Dollar):

https://coincodex.com/article/2328/gemini-launches-gusd-stablecoin/

I agree with you. I was also wondering if there is any other usage of stablecoins such as blockchain representation of fiat, not only "price-stable cryptocurrency" but also value preservation.

Stable coin is a term used in cryptocurrencies meant to hold stable values. For example, Tehter (USDT) is a block chain based asset meant to trade for $1 (USD). It is a "Price-stable cryptocurrency."

You need to make a decision to enter the virtual world. I gave my money and I believe I can make money from this market. You should investigate and decide. I do not regret that you will not regret it.

The function of a stable coin is to extend the desirable aspects of true distributed consensus cryptos to a decentralized digital medium of exchange, with unit of account, for the real life usage.
These aspects are: censorless, permissionless, borderless, fast transactions and marginal fees above all. So yes, a stablecoin can be used also to escape from the dumps of the volatile crypto-assets (all nowdays cryptos) as well as from any other asset dump, exactly as the most trusted fiat are used today. But as saying that the most trusted fiat today are used ONLY for escape from asset investments volatility is really crazy....that's the same for a true stablecoin.

I see some problem with Havven:
- The lack of an external reserve asset used as collateral
- The lack of a clear and good reference basket
- It's built on ETH, that's not, by far, the best distributed censorless and secure digital ledger available at the moment

When you think about stable coins , then you understand that the market at this point is very volatile so the idea is to have two coins, one coin that is exposed to the volatile market while the other coin is stable and it is not affected by the market. Take a look at Havven, they have a working model of how stablecoin should be

The only usefulness of the stable crypto to secure your profit from your trade activities. I know some projects are building its own market to accept its own stable crypto.
Tether doesn't have any usefulness to be used in our real life. it's become the safest way to get your profit and avoid the dump.

There os only one stable coin IMO, and that is tether, the other projects trying to play smart will end up to nothing, Tether wether we like it or not is backed by USD, other projects are trying to use some programs to back up their claims. Stable coin must be stable, can someone tell me where nubits is now.

This market is a speculative market, and there is no very stable coin. If a bit of a more stable coin, I think only bitcoin and ETH, only they are keeping steady growth, even though the market is bad, they still don't fall too much.

Stable coin is just a fantasy, there is not any currency or asset in the world out there that has a stable value, even currencies backed by governments are not stable a t all, the high volatility of the cryptocurrencies is what makes them both highly popular and unsuitable for main stream uses, the only stable coin that currently is "stable" is the Tether and that is subject to failure since it has an increasing supply and lacks auditing. volatility should be an asset that people embrace and use to their advantage to make profit, just like a lot of people did with bitcoin.

It seems to me the most stable coin at the moment is bitcoin and I invest in it because I am confident in its further growth 

here's one of the few papers about that question:
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2508296

Yes that's the question!
As said, the double coin scheme with a share coin backed by an external cryptoasset and a stable coin tethered to a reference basket by a decentralized reserve asset bank is the most promising approach IMHO....

A token like USDT is a stable currency.
There are QC, and this token is the same stable coin, which is linked to RMB one to one.

Yes, I agree. But the lack of a decentralized, permissionless, stable coin is one of the main reasons for not having a true real life usage for cryptos....

Yes, the more the sphere of cryptocurrencies develops, the more there will be a need for such tokens. But the question is. How to make these projects?

As there is no active usage of crypto coins in real life for now, I think people do not take an interest in stable coins for now.
When the crypto is used frequently and effectively, they will be needed, for sure.

Actually there isn't a true stable coin,  fiat or crypto.
However, in my perspective, a true stable-coin is exactly what we need, and I'm waiting keen for someone who will be able to implement that kind of feature in the near future, It is probably the missing brick in the Nakamoto vision.
The most fascinating model I've ever seen in that field, is a kind of Hayek double coin system backed by an external "cryptoasset" as reserve asset. Essentially a double coin system made by a stable coin tethered to a reference basket, and a share coin, offered by an IPO and paid by whatever the best external crypto-asset would be available (actually, bitcoin).
The share-holders would be, in fact, a sort of DAO, acting as a Decentralized Reserve Asset Bank, keeping the stable-coin tethered to the reference basket by using the bitcoin reserve, obviously everything being regulated by an immutable, permissionless, distributed ledger's protocol/algorithms.
That kind of stable-coin would be emitted or bought by the the DRAB to keep its purchasing power in a predefined channel with the reference basket. The shares would be backed by bitcoins, so that, the asset, will be used for its primary essence. Also, new shares, should be emitted in exchange of bitcoins, thus increasing the BTC asset reserve of the DRAB, but not diluting the shares.

In this scheme, the protocol proposed for the distributed ledger consensus, by some of its supporters, would be something called "proof of payment", where "miners" would use the external crypto asset (bitcoin) to concur for the Block Validations, by offering a rational asset amount (compared to the share price), exactly as a POW-miner offers his hashing power and electricity in a POW protocol.
All the bitcoins spent for that, will be not burnt like in a Proof-of-Burn protocol, but will simply go to increase the asset reserve of the DRAB.

Anyone would be able to build up his System, as is to create a new "cryptocurrency", but by an IPO, so investing his own funds and not using money from others as with any sorts of ICOs or crowds.

In fact, the validity of the reference basket (that the DRAB should be able to change and regulate in some way) and the team, building up and advertising a good platform, should be, really, the major factors for the success of any of those "Hayek systems".

Non-fungibility between the 2 coins, an asset reserve made by an external crypto-commodity, as well as the proof-of-payment idea, are the main features of this concept.
 
This scheme could be extended (with some obvious differences) as well to actual fiat central banks, in some way replicating a gold standard 2.0: a CriptoGold standard. The reference basket would be than the fiat currency of that central bank, with probably no need for shareholders, and, probably, fast transactions and low fees would be the major resting features of what the cryptos offers.....but the external reserve asset, BTC in this case, should gain value and would not be in exponential need for scaling, as well as the share-coin, because the stable-coin would cover that need.

Some experts say that Hayek theory is in contrast with the BTC revolution despite some evident similarities, and with good reasons: because of its non-fungibility, scarcity, thus extreme volatility and lack of unit of account. The non inter-fungible Double coin idea backed by an external crypto asset, would make the Hayek dream of healthy competition between privates money systems possible, and open the route for even extremely different visions of a monetary cultural shift.

stablecoin? all coins are stable, the unstable is the price.
You will still have 100 ETH in your asset deposit until you redeem it with something else. As long as you do not trade it, you will still have 100 ETH. Your ETH is stable.

Price depends on demand and supply in the market, even the best coin will experience price fluctuations. No one can predict it unless you have 60% of all current digital assets

I haven't read anything about a subpoena regarding Tether. But I'm not really following that closely to be honest.
Tether and TrueUSD are fiat-collatarized stablecoins.
Another form are crypto-collatarized stablecoins.
There is an article you can read about those special coins -> https://hackernoon.com/an-overview-of-stablecoins-cf3fac75dcf7

I think that steblecoin simply necessary for the market. In addition, the ico projects are expected to raise money in that currency. Because it is not the case when a team collects the same amount of ether and then it turns out that he fell by 60%

I would say that stable coin in crypto will be any coin with fixing in any currency or even cryptocurrency ( as librecash mentiond above, the price there is fized in ETH) BUT it has to be worldwide used, that requires really professional team and spotless marketing. As for now no project can do that.

only traditional coin are stablecoin that exist one this days. but in cryptocurrency i think this is not existing because lot of traders do some dump and pumping of coin thats why it will never have this type of coin.

The most stablecoin I know (or rather new of) was Bitconnect but where is Bitconnect today? This shows that for a coin to last long it has to be unstable. Price movement should go up or down at relative intervals and not just go up and keep going up due to market manipulation.

How is it possible that it is DAO but not the DAO it has to be? Well...Fine with u,i will deeply investigate how LibreCash works, probably Im missing smth

Stablecoin is growing in popularity and has gained traction since last year. However, it seems that most crypto viewers have trouble understanding the concept of 'stablecoin'. No one is to blame for this mainly because of the fact that they are quite difficult concepts to grasp, especially given that most projects are not ready for use on a large scale, or just white paper, which is always elusive. We should to support stablecoin to succeed in the future

if what they are offering is a concept of asset price stability, there probably will not be too many people who will be interested because the price is stable and that means it will be hard to find profit, because the conditions are less fluctuating. but if offered about the security system on our assets, maybe much to attract the attention of investors

DAO there means not from the tech side, DAO mostly means the system of managing where users decide how much tokens to issue, when and for what purpose

All coins u have mentiond are good but they have zero hype and thats why they could not be really stable coins! Just for the reason they are not used y anyone. As for Libre it will work as a DAO but we all know that there is no DAO around that would work properly

I dont think any coin can fixed and stable because its not centralized to control its value. Crypto market fluctuate all the time and there are many alt coins coming to market everyday.

Stablecoins can replace usd and tether in the future one of the recent quality stablecoin project i have known is Havven and i think it has huge potential for future.

Well, there are plenty other stable coins, as Heaven or LibreCash. As for the last it is based on ETH smart contracts and all the info about backing is visible, u may check any time u want how much are backed and how may tokens is issued. TrueUSD is also a good option

The main problem of any stable coin is the lack of transperancy! All of them are centralized and any amount of tokens can be issued! Just look at the Tether! They have printed 120 mil more tokens! And how can I ensure that all of that 120 mil tokens are backed?? It is not the decentralization at all, the only connection with blockchain here is just the name "blockchain project"

I actually do not know much about BITCOIN but I will try to continue to find out, and one of them answered your question about what is STABLECOIN ?.
My answer is: at any given time the price of coin is in the stock market.

Stable when all coins grow continuously on a daily basis

In this capacity, in recent months, Litecoin has proven to be very good. Therefore, I personally bet on him.

in my opinion there are so many coins but the stable coin is only bitcoin because this is trusted and profitable coin and give profit to customers.

Most of the time I use the USDT, because the USDT is pegged to the exchange rate, so most of the time when the whole market has a big drop, I want to hold the USDT as a wise choice.

 A stablecoin is an asset that offers price stability characteristics, which makes it suitable for certain functions, such as a: medium of exchange, unit of account.

Not really that knowledgeable about this, but my impression is that stable tokens are only stable up to a point.  The problem is that keeping them stable can be expensive if the underlying prices are fluctuating, and so when they fail, the effects can be pretty devastating.

Do u know a lot about architecture of this DAI token and its applicability?Saw a lot of articles about this new token recently, and don`t understand at all its relations with Maker. Could you pls tell in details about perspectives of this DAI?

stable coins are actually only stable through its myth, mostly but to a not insignificant amount through its convertability, the us dollar is currently only beeing considered valuable because people belive in some kind of financial cartel for the us dollar,

regards

I would have a look at DAI which is a token on ethereum (as USDT too). It is pegged to the Dollar in the form of a complex contract. It is backed by Ether as a collateral. I currently hold a bit of USDT and DAI to spread risk. The main risk of DAI is that it is new and has to prove it being stable in market crashes yet.

The term stablecoin is used to describe cryptococci that are immune to, or at least very resistant to changes in price and volatility. In the words of Hackernoon author Haseeb Qureshi in an article about stablecoins, cryptocurrency "can not be an effective value benchmark if the price fluctuates 20 percent on a typical day."

The idea behind creating stablecoin is to let ordinary people get paid for crypto, spend it, and get all the benefits that crypto offers without all the risks. Although this sounds like an interesting idea, how can it be done?

The most famous effort to create stablecoin, US Dollar Token (USDT) by Tether has been mired in controversy and suspicion in recent months. Tether promises that their currency is essentially an IOU for one US dollar. Some experts even suspect that Tether does not maintain the same amount of US dollar reserves, and may operate on a reserve basis.

For I know, the most stable coins is not exist. Even though the USDT and QC( USDT is equal to US dollar, QC equal to China RMB). This is a investment market, so the absolutely stable is hard to maintain.

The prime function of a stablecoin is stability.

In these times of volatility, people are looking for a stablecoin because they want to be sure its value tomorrow will be predictable and close to today’s value.

This criterion favors fiat-backed tokens as they will track the price of the underlying asset rather than other digital assets and therefore most of them are easy to value... for example Tether and their cryptocurrency USDT pegged to the US Dollar.

But it was recently announced that Tether received subpoena from the U.S. Commodity Futures Trading Commission (CFTC). Would you agree there is room for improvement? What other stablecoins do you know/support?