What is the best decentralized stablecoin?

[bbc.reporter]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

[guydin]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

All stablecoins that are backed by gold or dollars, are centralised, as they need a company that will hold this collateral. Decentralised stablecoins will be either without any collateral or will be backed by crypto. The most trustless and decentralised stablecoins are certainly algorithmic stablecoins that are regulated by arbitrageurs, but I can't recommend you any of them, as they are still not very reliable. So the best choice for you will be DAI I think.

[livingfree]

Many will suggest DAI.

There's no other decentralized stablecoin that I can see that you might like. Paxos AFAIK is a decentralized one but it has changed to USDP but I'm not sure if it remains to be one after that change in ticker so you can do the research and other details about it.

[tbct_mt2]

I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

From many stablecoins in the stablecoin category, I think DAI is the most decentralized stablecoin.

DAI is used on decentralized exchanges and by designed with its collateral, it is the safest decentralized stable coin.

[marine4u]

Popular stable coin will be chosen like Dai, Usdc or Tusd… The fact is that at this stage Stable coin is having serious risks if the Fed develops a coin they will proceed to ban stable coins current usage.  Where Tether will be in the zone.  So we need more protocols that can pool stable coins and convert in defi platforms at 1:1 ratio.  The Fish protocol could be on the right track as stablecoins gain more and more attention with a lot of variety emerging.

[amishmanish]

There have been many. Like others said, DAI is the favorite due to the MakerDAO pedigree. Apart from this, I have also read good things about OHM by OlympusDAO. It may just be due to the people in my twitter feed but I see a lot of talk about OHM from well-known DeFi accounts.

Another option is sUSD from Synthetix. This is pretty much a sub-community of DeFi in itself that has helped launch a lot of the money legos we keep seeing in DeFi.

Lastly, if you are looking to get into some sort of financial jugglery with your ETH or BTC, I'd recommend to check BarnBridge and its various prodcuts:

1.) Smart Yield
2.) Smart Exposure
3.) Smart Alpha

I'd really love it if you can atleast go and try to understand what they are upto. There could be a real discussion on these basic DeFi primitives.

[kanayaTabitha]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

Any reason why you are not feel safe if holding USDT, USDC or BUSD ? i think it's just the same risk if you're holding the decentralized one too. The price won't be so different, it's just based on US dollars, and it think USDT has the biggest trading volume of all crypto right now which means it's the safest in my opinion.

[Synerggy]

Simple! The answer is DAI, there are few new Decentralized stable coins out there right now but none is more serious with their aims than DAI stable coin and believe me Decentralized stable coins make more sense than centralised stable coins like USDT and others, things are more safer with decentralized projects

[cabron]

Must also prepare because SEC is about to regulate issuer of stablecoins, the headline that I saw was that Biden admin weighing bank-like regulation for stablecoin issuers

It's time to know whether the government can actaully subpoena DAI issuer and regulate them just as how they could subpoena USDC and USDT issuers. Can the government do that to MakerDAO (Rune Christensen)?

[Devifajarina]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

Of the many decentralized Stablecoins I know of only Dai and Paxof AFAIK, both are the most decentralized of most, stablecoins are designed to stabilize cryptocurrencies, stablecoins are backed by multiple reserve assets, thus forming one part of a growing ecosystem, but currently not many people who knows what stablecoins are, their functions and how they work, given that many things in them are not completely and clearly decentralized.

[aprilnot]

DAI is the best decentralized stablecoin to date. no stablecoin is more shareable than this coin. other stablecoins are too centralized and that is bad for the crypto market. but DAIs are different, they are made for the crypto community that cares about decentralization and privacy values.

[zasad@]

I am using DAI.
Acala.network project will soon have a new stablecoin in the polcadot ecosystem
https://acala.network/
How this stablecoin will work can be seen in the Karura ecosystem
https://acala.network/karura
"multi-collateralized stablecoin backed by cross-chain assets (kUSD)"

[Wahyuihib]

Why don't you feel safe against USDT, USDC or BUSD. Isn't the value of some of these stablecoins already pegged at the same ratio to their original value. I don't use any other stablecoin apart from USDT. because I always use USDT when the market is not good. maybe other friends have recommendations about stablecoins for you other than USDT, USDC or BUSD.

[Williamm07]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

BUSD, USDT, USDC are more reliable because all they are made for is to support FIAT in a digital form, FIAT isn't decentralized that's why I don't give decentralized stable coins any face but some said DAI is the best though I just prefer USDT due to more exposure

[fullhdpixel]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

I guess there is no purely decentralized stablecoin is available in the market. The only stablecoin which is being called as decentralized is DAI but I am not ready to accept its decentralization. Because, in my opinion a decentralized thing should not be controlled and should be able to mine but this way I am not ready to accept DAI is decentralized one. Moreover, in some sense, a stablecoin cannot be a decentralized one.

I remember someone conducted a naming contest in our services board for a mineable (POS algorithm) stablecoin but I am not sure about its launch and any other details.

I am also in plan to sell 1 BTC by end of this year and to hold fiats to buy back BTC by end of 2022. I am a fully KYC cleared user in my local exchange hence I may sell my BTC for fiats and I guess my local exchange will keep functioning without any hacking/bankruptcy problems.

[bitcon]

I reckon the best time to begin your plan for the bear market is to do it during the bull market. I want to hold American dollars or a dollar equivalent when the bear market arrives, however, I do not feel safe holding centralized stablecoins like USDT, USDC or BUSD. What are the decentralized stablecoins can everyone of you recommend?

That’s right, in preparing for a bear market, it is better to sell off different risky altcoins and accumulate stable coins so as to buy more mainstream currencies in a dip. Actually, the most popular decentralised stable coin is certainly DAI that is backed by other cryptocurrencies. Although 40% of them are centralised, but there is a package of them which decreases risks a little bit.

[pinggoki]

If you are farming for stablecoins I would suggest DAI and USDN but in reality there is little to no money to be made in the stablecoin industry because of its very low volatility rate. That's just everything there is to it. You can't expect a bonsai plant to grow big-ass branches by the time it reaches adulthood so unless you're farming or staking stablecoins, you wouldn't get much from it. Low risk low reward per se. So you're better off investing on other cryptocurrencies on the market with higher growth potential and at the end of the day cheaper and much more profitable ventures than getting yourself stuck on stablecoins.

Why don't you feel safe against USDT, USDC or BUSD. Isn't the value of some of these stablecoins already pegged at the same ratio to their original value. I don't use any other stablecoin apart from USDT. because I always use USDT when the market is not good. maybe other friends have recommendations about stablecoins for you other than USDT, USDC or BUSD.

Tether is a bit speculative now although I personally use it for everything that I need stablecoins for. It's just something that I wouldn't put my money on for a long time because of the fact that  it's speculative asset, that's just it. At the end of the day to each his own and I found success putting my money on DAI and USDN so I may have some bias over the two aforementioned cryptocurrencies. USDT for me is good for quick transactions and not really something that is good to keep the value of your wealth in check. To each his own altogether

[Devifajarina]

That’s right, in preparing for a bear market, it is better to sell off different risky altcoins and accumulate stable coins so as to buy more mainstream currencies in a dip. Actually, the most popular decentralised stable coin is certainly DAI that is backed by other cryptocurrencies. Although 40% of them are centralised, but there is a package of them which decreases risks a little bit.

Collecting stablecoins is actually safer than trying to buy coins whose movements are not clear, and this is done when market conditions are down, stablecoins need to be controlled, even though centralized and backed by cryptocurrencies, if these conditions are not able to provide benefits for everyone who makes purchases, then the impact the risk posed in a bear market will be a problem for people who are unable to get out of that position.

[HardCore12V]

Why are people so scared of centralised stable coins? Decentralized projects are as dangerous as centralised projects, even with decentralized projects the team can walk away without any law looking into them unlike centralised projects, USDT had issues years back and the law was after them later things went straight again

[bbc.reporter]

It appears DAI is considered the safest choice and the most popular to hold hehe. In any case, I am becoming more uncomfortable with tether USDT when the amount I hold becomes larger. We can never be too certain when the peg will break.



Tether Has Loaned $1B to Celsius Network: Report

Celsius Network CEO Alex Mashinsky said the company pays an interest rate of 5%-6% to Tether, Bloomberg reported Thursday as part of an investigation into the stablecoin provider’s reserves.

The investigation found that Tether had loaned billions of dollars to crypto companies using bitcoin as collateral.

Source https://www.coindesk.com/business/2021/10/07/tether-has-lent-1b-to-celsius-network-report/


Also, it is speculated that Tether might have given failing Chinese property developers billions in loans which the property developers cannot pay anymore.