MakerDAO’s Embrace of Centralized Stablecoins Offers Risks and Rewards
MakerDAO's ingestion of centralized stablecoins may help maintain a $ peg. But it could also invite more regulatory scrutiny.
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On Wednesday, October 13, 2021, the market capitalization of all the stablecoins in existence is around $134 billion, which is 5.60% of the entire $2.4 trillion crypto economy. While centralized stablecoin projects dominate the pack of dollar-pegged tokens, a great number of decentralized stablecoins have been moving in on these centralized competitors. Algorithmic or defi-styled stablecoin market caps have accrued billions of dollars this past year. While Tether and USD Coin Eclipse the Market, Algorithmic Defi Stablecoins Still Shine Tether (USDT) is one of the oldest and the largest....
On-chain data shows huge inflows of $222 million worth of stablecoins on exchanges, suggesting Bitcoin whales might be looking to buy the dip. Centralized Exchanges Observe $222 Million Worth Of Stablecoin Inflows As pointed out by a CryptoQuant post, centralized exchanges saw inflows of more than $222 million worth of stablecoins yesterday. The timing of this huge spike seems to match up with that of Bitcoin’s price showing a dip. The exchange inflow is an indicator that shows the amount of stablecoins entering centralized exchanges from personal wallets. When the value of this....
xSigma is an upcoming stablecoin DEX protocol developed by the first DeFi project backed by a NASDAQ-listed company. In order to attract liquidity providers to supply their stablecoins to the decentralized exchange, the protocol will feature a lucrative rewards system for liquidity mining. The project recently finalized its smart contract and today released its whitepaper to the public. Provide Stablecoins, Earn SIG Tokens DeFi investors have earned some great yields recently, but also fallen victim to scammers, hackers and just awful programmers. For this reason it is good to find a....
A recent ECB report says stablecoins are not practical as a mode of payment and their current form isn't fit for use in the real economy. The European Central Bank (ECB) has released a report analyzing the growth of the cryptocurrency market over the past decade and the risks it poses to the existing financial system.A section of the report dedicated to stablecoins discussed the central role that it plays in the current ecosystem. Stablecoins are increasingly used to interlink various blockchain networks and play a critical role in offering liquidity to the decentralized finance (DeFi)....
In response to the recent collapse of controversial crypto project Terra, Britain is looking into ways to ensure stablecoins don’t threaten their wider financial system. Her Majesty’s Treasury printed a new consultation paper on Tuesday, May 31, 2022, regarding minimizing the risks of the possible collapse of stablecoins and many more digital currencies by utilizing […]