Blockchain and Crypto Blog

Ivan on Tech Academy provides latest insights and reports about the blockchain industry.

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How Do Stablecoins Work and Which Are The Top Stablecoins?

Written By Ivan on Tech

Aug 13, 2020

Stablecoins are price-stable cryptocurrencies that minimize overall volatility. The importance of stablecoins in crypto adoption simply can’t be underestimated. One of the most significant factors holding back the widespread adoption of cryptocurrencies has been its extreme volatility. Top stablecoins offer an alternative where people can dabble in cryptocurrencies without worrying about volatility. As you can imagine, stablecoins have found tremendous utility in modern cryptosystem.

So, before we delve into a list of stablecoins, let’s understand what are stablecoins and the importance of currency stability.

The Importance of Stable Currencies

As we have seen time and time again, currency stability is vital for the overall well-being of the economy. For example, Venezuela is a perfect instance of a country that went through financial turmoil over the last 40 years.

  • In 1983, Venezuela went through continuous and uninterrupted inflation.
  • Under Nicolas Maduro’s...
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DeFi Deep Dive - What is Curve Finance?

Written By Ivan on Tech

Jul 23, 2020

Curve is a decentralized exchange (DEX) designed for efficient stablecoin trading. It is like Uniswap in that it uses liquidity pools, it’s non-custodial, and it rewards its liquidity providers. However, because Curve focuses solely on stablecoins, it costs less to use.

Curve vs. Uniswap

Stablecoins are traded directly against each other on Curve. Furthermore, that is one of the most significant differences between it and Uniswap. If you want to trade between a pair of stablecoins on Uniswap, two trades must occur: 

  1. Stablecoin #1 gets traded for Ethereum (ETH). 
  2. ETH gets traded for Stablecoin #2. 

So, as a trader, you will accrue double trading fees. And while Curve has similar benefits as Uniswap for liquidity providers, it’s not subject to the degree of “impermanent loss.” That’s because Curve only trades between stablecoins, whilst Uniswap trades directly against ETH. And ETH’s volatility can wreak havoc on...

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Stablecoin Summary: Top 5 Stablecoins in 2020

Written By Ivan on Tech

Jun 02, 2020

Cryptocurrencies are frequently criticized for being volatile by many traditional traders, bankers, and media pundits. Many still tout gold as the only stable store-of-value alternative against the dollar. When considering the comparison between gold and cryptocurrencies, Vice Chairman of Berkshire Hathaway Charlie Munger views it simply. Man cannot make more gold, but he can make more Bitcoin.

Despite this misunderstanding, however, not all cryptocurrencies lack stability. Some are tied to real world assets like gold or the dollar. These cryptocurrencies are often named stablecoins due to their relative stability versus coins like Bitcoin or Ethereum. 

Although, stablecoins may seem redundant at first. Their implementation allows for such innovations as a more private store and transfer of wealth, units of stable worth on decentralized exchanges, 

Some stablecoins pit their value against cryptocurrencies that users have put up for collateral. Other stablecoins have a...

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Ethereum DeFi Bonds and Stablecoins

Written By Ivan on Tech

May 21, 2020

The Etherum ecosystem thrives off of several decentralized solutions to faults in traditional financial systems. Among such solutions, its DeFi (decentralized finance) ecosystem has become a breeding ground for innovation that exceeds the expectations of existing systems. 

What is DeFi?

DeFi is the ecosystem of financial applications that operate on blockchain networks. Digital assets may be acquired through DeFi products available on these applications. Examples of DeFi products include:

  • Decentralized exchanges
  • Tokenization platforms
  • Derivatives
  • Prediction markets

Digital assets in the DeFi ecosystem may or may not represent assets in the real world. A significant proportion of the assets derive their value from the execution of smart contracts, which can mirror financial instruments in traditional markets. 

Photo Source: Stably

Smart contracts provide the infrastructure for many decentralized finance technologies, allowing for the implementation of decentralized...

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