What's the difference between stablecoins? - page 2.

tippytoes

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Quote from: lkjhg on October 28, 2020, 06:39:02 PM

in my opinion, the five stable coins that you mentioned have no difference, stable coins are like fiat,
but more secure and transparent, the difference is only in the smart contract platform.
USDT, DAI or USDC may look different, but they function the same.

It only varies on which network they are connected to but all are pegged to US$. So if you are trying to use any one of them, you need to be careful to which network they are connected with because wrong address and you will not recover your funds. Supposedly, they have backing of real assets, but don't know the absolute truth about their claims.

Freebieindia

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on the basic level all stablecoins are same, that is having $1 value. But going into depth some are centralized, some are decentralized and All are run by different companies.

lkjhg

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in my opinion, the five stable coins that you mentioned have no difference, stable coins are like fiat,
but more secure and transparent, the difference is only in the smart contract platform.
USDT, DAI or USDC may look different, but they function the same.

bitkanu

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The only difference between them all is the company that issued the stable coin and the chain that has already used to operated the stable coins too.
I think those stable coins are backed by the value of the dollar.
The difference should be on the technical thing.

DAI is a different thing from the rest consider it has used a formula to make it becomes decentralized. It doesn't have frozen function.

NeilLostBitCoin

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Quote from: iamaruf on October 28, 2020, 06:09:12 PM

There’s no big difference. Price will be same, I mean stable. Only difference is the chain. Like BUSD in the Binance chain,tether in the ETH Chain. This is the main difference.It depends on people which chain stable coins he will trade Cheesy

Yes, stablecoins are simply a coin that is peg in usd. 1:1 ratio. If you may notice they are not have so difference in their price. And most or all of the defi projects have their peg coin maybe usdt or tusd. If the usd isnat peak their price will rise, if the dollar dumps their price will dump too. Just correct me if I'm wrong.

Danslip

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Almost prices are pegged to 1-1 to fiat money but the backups are different. If the value of stablecoin is not guaranteed with the collateral or insurance, bad things can happen in case of high market volatility. The Bitfinex team is behind USDT, so the majority of crypto traders prefer to sell the crypto in the USDT pairs,AFAIK.

iamaruf

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There’s no big difference. Price will be same, I mean stable. Only difference is the chain. Like BUSD in the Binance chain,tether in the ETH Chain. This is the main difference.It depends on people which chain stable coins he will trade Cheesy

flagpara

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Quote from: VolkoB on October 28, 2020, 12:40:37 PM

There is a huge amount of stablecoins in the world of cryptocurrencies today.
What is their difference, why are there so many of them.

There are more than 5 types of stablecoins on binance alone, for example
USDT
USDC
BUSD
TUSD
DAI
Is there anyone who understands the depth?

Stablecoin is the same as USD, only difference is sometimes more than valuable than USD or less valuable. Stablecoin supply will increase as stable demand. From my view, all stablecoin are the same in use case, another difference is security. All invertors can't trust one stablecoin. These 5 coins are the best.

semobo

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Quote from: VolkoB on October 28, 2020, 12:40:37 PM

There is a huge amount of stablecoins in the world of cryptocurrencies today.
What is their difference, why are there so many of them.

There are more than 5 types of stablecoins on binance alone, for example
USDT
USDC
BUSD
TUSD
DAI
Is there anyone who understands the depth?

Who controls is the real difference between the stable coins, most of the coins are under control of some company and they can print more coins whenever they want just like your central bank prints fiat money and dilute them into the market straightaway.

VIP BTC

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Each of these coins has its own developer. USDT with unlimited suppay, this has distinguished it from other stable coins. USDT also has an omni and TRC20 version, while the others are only ERC20 version, BUSD is a stable coin from Binance. If I'm not mistaken there are about 40 versions of stable coins.

naikturun

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Quote from: Nalbo on October 28, 2020, 12:47:08 PM

Most of them are backed by their fiat equivalent in 1:1 ratio. That holds true for USDC, Paxos USD, BUSD and TUSD.
The DAI is a US dollar pegged coin but escrowed by Ethereum. If the prices of ethereum frozen decreases, they pull in the tokens and if it's larger, they mint more.
There are some coins that are minted by choice, USDT is one of the example.

usdt does not have any guarantees or backups so it's actually quite risky but because of its enormous use every day people put it aside and keep using tether as the first stable currency. can be seen from the total amount in circulation.

BillionaireWannaBe

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I feel a p2p truly decentralized stable(ish) coin like Bitbay is the most reliable longer term.
It is not as stable, it is more to my eyes a smoothing mechanism. I don't think the smoothing is quite aggressive enough.
An ingenious idea though.

royalfestus

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Aside the difference with Decentralized and Centralized coin which has no significant impact for trading, I also consider the size of the market of the stable coin which also influence the daily traded volume, they also have different strength with circulating supply. They all make the top 100 coin on CMC with over $20 billion size in the space, high percentage of it can also be support with fiat in the bank.

tvplus006

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Quote from: livingfree on October 28, 2020, 01:15:39 PM

...
Main reason why many likes DAI is because it's decentralized.

I like how Dai stability is achieved against the dollar: thanks to a smart contract, tokens are issued or burned if the price of the token changes in any direction. In this way, the stability of the DAI exchange rate is ensured without interference from anyone. And what ensures the stability of the token in other stablecoins? Only the trust.

irixo10

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Quote from: VolkoB on October 28, 2020, 12:40:37 PM

There is a huge amount of stablecoins in the world of cryptocurrencies today.
What is their difference, why are there so many of them.

There are more than 5 types of stablecoins on binance alone, for example
USDT
USDC
BUSD
TUSD
DAI
Is there anyone who understands the depth?

In my own opinion, the main difference between all these stablecoins is, they are owned or created by different developers or platforms that's all. Also, another difference is, some are centralized stablecoins and some are Decentralized stablecoins (DAI). In addition, there is one that can be transferred through different blockchains such Tron, Ethereum, Omini (USDT) while others have their respective blockchains. However, apart from all these, they are the same, that is, their price is stable which also means that, they serve the same purpose.

livingfree

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Quote from: New_order on October 28, 2020, 01:02:08 PM

They are basically the same thing, the only difference is centralized and decentralized stable coins, I believe USDC, BUSD and USDT are centralized stable coins and DAI is the best decentralized stable coin I know, USDT is the most popular and most supported also it has the highest liquidity and volume

This is the main difference of DAI and the others.

The other stable coins are controlled by one entity. And they can freeze funds any time they want, they can block an address and won't allow the owner to withdraw it on any exchange where they will coordinate.

Main reason why many likes DAI is because it's decentralized.

New_order

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Quote from: VolkoB on October 28, 2020, 12:40:37 PM

There is a huge amount of stablecoins in the world of cryptocurrencies today.
What is their difference, why are there so many of them.

There are more than 5 types of stablecoins on binance alone, for example
USDT
USDC
BUSD
TUSD
DAI
Is there anyone who understands the depth?

They are basically the same thing, the only difference is centralized and decentralized stable coins, I believe USDC, BUSD and USDT are centralized stable coins and DAI is the best decentralized stable coin I know, USDT is the most popular and most supported also it has the highest liquidity and volume

FinneysTrueVision

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The only real difference is the central party which issues each of these coins. The only exception would be DAI which is considered to be a decentralized stablecoin. Instead of being backed by US dollars DAI is backed by collateral in the form of ETH.

In the beginning Tether was the only one being used by major exchanges but then there was speculation as to whether USDT was fully backed and they came under legal pressure. This caused other companies to start creating their own stablecoins to compete with Tether.

Nalbo

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Most of them are backed by their fiat equivalent in 1:1 ratio. That holds true for USDC, Paxos USD, BUSD and TUSD.
The DAI is a US dollar pegged coin but escrowed by Ethereum. If the prices of ethereum frozen decreases, they pull in the tokens and if it's larger, they mint more.
There are some coins that are minted by choice, USDT is one of the example.

bttmember

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There is not much difference as most of them are ethereum based tokens backed by 1:1 fiat.
The only difference is the company, brand, level of trust and listing or acceptance at different exchanges, platforms and businesses. To me all are same to be honest.

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