Comprehensive overview of STABLECOINS PART 3**CRYPTO COLLATERALIZED STABLECOINS**Instead of backing units of a stablecoin 1:1 with fiat, crypto-collateralized stablecoins hold a ratio greater than 1:1 of a cryptocurrency (or basket of cryptocurrencies) and issue units of a stablecoin supported by the cryptocurrency held. **Pros:**1. Does not rely on third-party custody like fiat-collateralized 2. Conducted on-chain which enables a faster increase/decrease of stable coin units and liquidity than fiat-collateralized 3. Transparent to external parties without the need for auditors **Cons:**1. Not capital efficient 2. Complex selection process if a basket of cryptocurrencies; questionable price stability/security if just one cryptocurrency **Projects with this structure:**1. Bitshares 2. MakerDAO 3. Aurora 4. Havven 5. CP Processor
**Read the full article at [Medium!](https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-3-f49597b30dde)**
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Comprehensive overview of STABLECOINS PART 3**CRYPTO COLLATERALIZED STABLECOINS**Instead of backing units of a stablecoin 1:1 with fiat, crypto-collateralized stablecoins hold a ratio greater than 1:1 of a cryptocurrency (or basket of cryptocurrencies) and issue units of a stablecoin supported by the cryptocurrency held. **Pros:**1. Does not rely on third-party custody like fiat-collateralized 2. Conducted on-chain which enables a faster increase/decrease of stable coin units and liquidity than fiat-collateralized 3. Transparent to external parties without the need for auditors **Cons:**1. Not capital efficient 2. Complex selection process if a basket of cryptocurrencies; questionable price stability/security if just one cryptocurrency **Projects with this structure:**1. Bitshares 2. MakerDAO 3. Aurora 4. Havven 5. CP Processor
**Read the full article at [Medium!](https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-3-f49597b30dde)**
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Due to the volatility of cryptocoins, it is no surprising that people are looking into stable coins. I believe that i trust Havven as they have got a great team and a working demo already. Havven is an interesting project for sure. We will see how their nomins will behave in practise. We wish them all the luck! |
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Because of great interest and importance of this topic, we have repeated the poll DO YOU THINK THAT STABLECOINS ARE NEEDED FOR THE FUTURE OF CRYPTO PAYMENTS, and it will last for seven days! We want to hear your opinion, so like this poll, share it or comment 
https://twitter.com/CP_Processor/status/998521133900140544 Final results of our poll are in! 70% of you believes that stablecoins are needed for the future of crypto payments!  |
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Final results of our poll are in! 70% of you believes that stablecoins are needed for the future of crypto payments!
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Final results of our poll are in! 70% of you believes that stablecoins are needed for the future of crypto payments!
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This project is quite good. It will be positive in the future
Thanks! We really appreciate you feedback  Although, crypto community is still not informed enough about stablecoins, we believe that will change soon, because they represent the future of crypto payments  |
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Looks interesting! I think this will be one of the most promising projects but need to know more a bit. Waiting for more information and if there's a bounty program
Thanks! We appreciate your support! When we announce the official release of our stable tokens, we will most definitely have a bounty program |
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I surely find stable coins very useful for many crypto projects, which prefer to use crypto before fiat for certain purposes, such as creating reserve funds for instance. Here are a couple meaningful things a stablecoin could also enable: 1. Increased global access to a stable monetary system 2. A currency for financial liabilities and derivatives 3. Mass adoption in real life |
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Comprehensive overview of STABLECOINS PART 2FIAT COLLATERALIZED STABLECOINS**Fiat collateral for creating a token represents reserves held by a central entity.** How it works: The mechanics for implementation are fairly straight-forward. A third party takes deposits in US Dollars (or another desirable fiat currency) and issues a unit of stablecoin for every dollar deposited. To cash out a unit of stablecoin, the third party wires US Dollar to the holder and burns a unit of the stablecoin. Pros:* Easy to conceptualize * Value will match USD with certainty if properly implemented (digitized dollars without capital controls) Cons:* Must trust third-party to hold fiat collateral * Need additional third-party for audit to make sure appropriate collateral is being held and units of stablecoin match deposits * Expensive and slow to audit Projects with this structure: 1.Tether,
2.TrueUSD,
3.DigixDAO,
4.Globcoin,
5.AAA reserve,
6.Stably,
7.X8 currencyRead the full article at - https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-2-7ebf0c36eb32 nice summary Thanks! Part 3 will soon be published |
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Comprehensive overview of STABLECOINS PART 2FIAT COLLATERALIZED STABLECOINS**Fiat collateral for creating a token represents reserves held by a central entity.** How it works: The mechanics for implementation are fairly straight-forward. A third party takes deposits in US Dollars (or another desirable fiat currency) and issues a unit of stablecoin for every dollar deposited. To cash out a unit of stablecoin, the third party wires US Dollar to the holder and burns a unit of the stablecoin. Pros:* Easy to conceptualize * Value will match USD with certainty if properly implemented (digitized dollars without capital controls) Cons:* Must trust third-party to hold fiat collateral * Need additional third-party for audit to make sure appropriate collateral is being held and units of stablecoin match deposits * Expensive and slow to audit Projects with this structure: 1.Tether,
2.TrueUSD,
3.DigixDAO,
4.Globcoin,
5.AAA reserve,
6.Stably,
7.X8 currencyRead the full article at - https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-2-7ebf0c36eb32
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Comprehensive overview of STABLECOINS PART 2FIAT COLLATERALIZED STABLECOINS**Fiat collateral for creating a token represents reserves held by a central entity.** How it works: The mechanics for implementation are fairly straight-forward. A third party takes deposits in US Dollars (or another desirable fiat currency) and issues a unit of stablecoin for every dollar deposited. To cash out a unit of stablecoin, the third party wires US Dollar to the holder and burns a unit of the stablecoin. Pros:* Easy to conceptualize * Value will match USD with certainty if properly implemented (digitized dollars without capital controls) Cons:* Must trust third-party to hold fiat collateral * Need additional third-party for audit to make sure appropriate collateral is being held and units of stablecoin match deposits * Expensive and slow to audit Projects with this structure: 1.Tether,
2.TrueUSD,
3.DigixDAO,
4.Globcoin,
5.AAA reserve,
6.Stably,
7.X8 currencyRead the full article at - https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-2-7ebf0c36eb32
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Comprehensive overview of STABLECOINS PART 2FIAT COLLATERALIZED STABLECOINS**Fiat collateral for creating a token represents reserves held by a central entity.** How it works: The mechanics for implementation are fairly straight-forward. A third party takes deposits in US Dollars (or another desirable fiat currency) and issues a unit of stablecoin for every dollar deposited. To cash out a unit of stablecoin, the third party wires US Dollar to the holder and burns a unit of the stablecoin. Pros:* Easy to conceptualize * Value will match USD with certainty if properly implemented (digitized dollars without capital controls) Cons:* Must trust third-party to hold fiat collateral * Need additional third-party for audit to make sure appropriate collateral is being held and units of stablecoin match deposits * Expensive and slow to audit Projects with this structure: 1.Tether,
2.TrueUSD,
3.DigixDAO,
4.Globcoin,
5.AAA reserve,
6.Stably,
7.X8 currencyRead the full article at - https://medium.com/cp-processor/comprehensive-overview-of-stablecoins-part-2-7ebf0c36eb32
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Yes, we need stablecoins for sure, because all people need to own some couns that bring stability into their portofolio. From what i saw untill now, Havven seems to be the most promising option regarding stablecoins.
Yes, Havven is interesting. But its price right now is $0,66  The current stablecoins offer is continuously changing and innovating, and that is a good thing. If we are going to take cryptocurrency mainstream then it's time to start using stablecoins and payment processors. |
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I personally prefer direct converting to fiat if I want to convert to fiat, but seems like not many exchange support for direct fiat converting. Stable coin are easily manipulated if we compared to other crypto, like the Tether case in bitfinex before.
Yes, you are right about Tether, it is actually adding to the volatility of the cryptomarket. What do you think about this new "stablecoin" that Circle is bringing to the market? Same as Tether, or maybe better? https://www.ccn.com/bitmain-backs-circles-stable-cryptocurrency-with-a-110-million-funding-round/ |
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