What is a stablecoin?

[1000 years]

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

[surtur001s]

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"

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

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

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

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

[Coltpython]

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.

[Theo222]

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.

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.

[semiwylson]

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.

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.

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.

[nrvkush]

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%

[Denker]

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?

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

[Sri rahayu]

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

[panurgos]

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.

[onesalt]

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.

[sahabond]

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?

[panurgos]

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.

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....

[michael shikany]

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.

[panurgos]

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?

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....

[panurgos]

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

[regexlove]

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 

[Shenzou]

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.

[postokenlover]

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.

[thepo1m]

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.

[poodle63]

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.

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....

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.