Discover and read the best of Twitter Threads about #stablecoins

Most recents (24)

So far this month at $OCEAN was incredible! There was overwhelming development,media coverage and activity on V4 #Web3 data marketplace
Datasets | Users | Total $OCEAN locked | TVL is/are already better and greater than in V3
Here's a recap/summary of this glorious month 🧵
a)At @wef's #Davos2022 $OCEAN founder @BrucePon put forward his vision on the future of Ocean,Metaverse and the new #DataEconomy
It was a massive success,many firms were attracted including @cypher_capital and it brought spotlight on $OCEAN Image
b) There was a demo by @EuProGigant & @deltaDAO where they shared the vision of the manufacturing industry's internet of tommorow as a #data exchange platform,audience was there
This initiative is powered by $OCEAN and it is a key part of it Image
Read 19 tweets

Dive in to learn more about @YetiFinance! This thread 🧵will cover 4 main points:
- What problems does CDP solve?
- What is Yeti Finance?
- How does it work?
- Yeti Finance's Stablecoin: $YUSD


Lending projects for #DeFi have similar role as banks in traditional markets, where they allow capital to flow freely and stimulating economic development.

Lending projects are classified into 2 types: Third party and First party. 👇
Third Party: An intermediary protocol for users to deposit tokens to earn interest and receive profit when lending those tokens back to others.
- Users can borrow & lend
- Not sufficient when the demand for #stablecoins loans is large
- Featured project: @AaveAave with TVL: $6.3B
Read 36 tweets
Not many know this: DeFi Option Vaults (DOVs) have gained tremendous popularity over the past few quarters. The potential for DOVs to revolutionize DeFi in the coming years is HUGE.

Learn more 🧵👇

#WebTr3e 🌳 #DeFi #DOVs #Options Image
What are DOVs? 👀

DOVs are automated vaults that use options as their underlying product to generate returns. At its peak, DOVs accounted for >$500M of the total #TVL in #DeFi options.

2 reasons why DOVs are a force to be reckoned with:
1️⃣ DOVs democratize complex options strategies to the masses
2️⃣ DOVs bring high organic yield to DeFi

We believe that DOVs will shape the #DeFi space moving forward. 🚀

Read 22 tweets
The largest decentralised stablecoin. The OG dapp on @ethereum.

@MakerDAO and DAI are one of the most successful #DeFi stories, but how do they work?

Understand Maker Protocol, assess DAI risk & alphas for you.

This is part 4 of #stablecoinwar series. Let's dive in. 🧵 1/n
@ethereum @MakerDAO A/ Mechanics of @MakerDAO

A quick refresher on types of #stablecoins- there are
1) fiat-backed
2) crypto-backed
3) algorithmic

DAI is a crypto-backed stablecoin, which means that all of its assets live on the blockchain! How do we make that happen? 2/n
@ethereum @MakerDAO At its core, we have Maker Protocol. It is essentially a set of smart contracts that provide all the rules for this financial system.

This may sound confusing, so let's use a simple analogy! 3/n
Read 32 tweets

Tras lo sucedido con #Celsius, hemos visto como algunas de las principales #Stablecoins del mercado han comenzado a tambalearse de nuevo haciendo saltar todas las alarmas 🚨

Pero, ¿Por qué está pasando esto?

Abro Hilo 🧵 1/18
Todo comenzó el pasado Lunes 13 de Junio, cuando tras el anuncio de la pausa en los retiros, Celsius se desplomó más de un 70%.

Una caída que arrastró al resto del mercado, y que ha puesto en el punto de mira a las #StableCoins... Image
Con dos protagonistas principales, #USDT la Stablecoin más grande del mundo 🌍 en la actualidad, y #USDD la Stablecoin Algorítmica de #TRON Image
Read 18 tweets
A longer tweet than i am usually accustomed to…

#Bitcoin was born out of the Great Financial Crisis as a solution to the perceived failures of fiat & centralized systems.Bitcoin’s price is very volatile, so to gauge how well it is faring, we need to view the big picture: 🧵

Michigan consumer sentiment just came out at 50—The lowest score in 85 years.

Inflation is at a 40-year high—Even by new metrics that bias it to the downside.

Jobs, up from last year, are still lower than before the pandemic, and the stock markets are starting to roll over.

"𝑰 𝒅𝒐𝒏'𝒕 𝒕𝒉𝒊𝒏𝒌 𝒕𝒉𝒆𝒓𝒆'𝒔 𝒃𝒆𝒆𝒏 𝒂𝒏𝒚 𝒈𝒓𝒆𝒂𝒕𝒆𝒓 𝒆𝒏𝒈𝒊𝒏𝒆 𝒐𝒇 𝒊𝒏𝒆𝒒𝒖𝒂𝒍𝒊𝒕𝒚 𝒕𝒉𝒂𝒏 𝒕𝒉𝒆 𝑭𝒆𝒅𝒆𝒓𝒂𝒍 𝑹𝒆𝒔𝒆𝒓𝒗𝒆 𝑩𝒂𝒏𝒌 𝒐𝒇 𝒕𝒉𝒆 𝑼𝒏𝒊𝒕𝒆𝒅 𝑺𝒕𝒂𝒕𝒆𝒔 𝒕𝒉𝒆 𝒍𝒂𝒔𝒕 11 𝒚𝒆𝒂𝒓𝒔."

- Stan Druckenmiller, August 23, 2021

Read 31 tweets
USDC- safe alternative to USDT. Most people think so.

Wait, there's more. I believe #USDC is the McDonald's of #stablecoins.

My thesis on why USDC is a sleeping giant, risk assessment, and possible alphas.

This is part 3 of the #stablecoinwar series. Let's dive in. 🧶 1/n
I'm going to get to what I mean by McDonald's of stablecoins. Ngl, I was blown away while reading @centre_io's whitepaper.

So let us run through how #USDC works, and I'll tell you about Centre's audacious vision. 2/n
@centre_io Similar to #USDT, USDC is a fiat-backed stablecoin. I've gone through the 3C framework and USDT in previous threads, so I won't go into detail here. (No worries, I'll link them at the end of this thread.)

Remember how USDT is backed by a confusing list of financial assets? 3/n
Read 28 tweets
NY put out legal guidance for #StableCoin regulation.

It is worth a ready but I will highlight what I found to be important.…
Purpose of the guidance:

1. the redeemability of such stablecoins;
2. the asset reserves that back such stablecoins (the “Reserves”); and
3. attestations concerning the backing by these Reserves.
i.e., at a 1:1 exchange rate for the U.S. dollar, net of ordinary, well-disclosed fees — subject to reasonable, non-burdensome conditions including otherwise applicable legal or regulatory requirements, such as the ability of the stablecoin holder to onboard with the issuer.
Read 8 tweets
A bipartisan #crypto bill was introduced yesterday, 7 June 👀📝

Also known as the Responsible Financial Innovation Act, @SenLummis and @SenGillibrand proposed a regulatory framework for digital assets in the bill. Here are the key takeaways in case you missed it:

1️⃣ Definitions

The bill recognizes #crypto as digital assets and makes a clear distinction between tokens that are considered securities vs. commodities. The class a token falls into will be evaluated by its purpose and the rights conveyed to its holders.

Based on the legislation, most #cryptocurrencies like #Bitcoin and #Ether are defined as "ancillary assets" which fall under commodities.

Read 13 tweets
1/ We’ll be posting throughout the day with our thoughts on the #crypto bill released today by @SenLummis and @SenGillibrand, the Lummis-Gillibrand Responsible Financial Innovation Act
3/ #LummisGillibrandBill would authorize depository institutions to issue payment stablecoins
Read 18 tweets

👉 Lending Loops

Let's talk about lending loops. These are far and away one of the most #degen strategies you can employ.



Because, in a normal lend/borrow situation, you risk your collateral, but you still have the asset you borrowed.

In a lend loop, you risk EVERYTHING;
Your collateral AND your borrowed asset.

If you get liquidated, you have NOTHING.

First, let's talk briefly about how lending and borrowing work, so the loop scenario becomes a bit more clear.

In traditional finance, when you borrow money, you either put up something for collateral (your house or car) or the lender takes a risk based on your credit.

Read 33 tweets
🧵on all IBC connected chains in Cosmos and how we came from no #IBC to around 48 active IBC chains and 70%+ in developer growth in 2021. We explore all #Cosmos IBC chains in an easy to digest thread. Or through Medium… #IBCGang #ATOM @cosmos
2) #Cosmos has been having rapid growth over the last couple of years. To give a little context Inter‐Blockchain Communication protocol (#IBC) was only approved on March 29th, 2021 from governance proposal #41.
3) According to a report by Electric Capital Cosmos had a 70% growth in developers in the #Cosmos ecosystem in 2021. This will only continue to grow as Cosmos technology improves and more tools come such as EVM-based chains.
Read 131 tweets
In a recent blog article @VitalikButerin put out two thought experiments to evaluate automated #stablecoins.…

I’d like to address the second one: what happens if you try to peg the stablecoin to an index that goes up 20% per year?

Vitalik claims that it will turn out as either of two ways:

1. It charges some negative interest rate on holders that equilibrates to basically cancel out the USD-denominated growth rate built into the index.
2. It turns into a Ponzi, giving stablecoin holders amazing returns for some time until it suddenly collapses with a bang.

Read 18 tweets

Le monde pleure la fin du bull-run, les portefeuilles sont à l'agonie, le nasdaq est en chute libre, la famine guette, la guerre fait rage et @Lagarde rejette les #cryptos. 😭

Mais il y a de l'espoir (en tout cas pour la #Crypto )👇
Ceux qui sont dans la #crypto considèrent que cet espace évolue par cycles, alternant entre des périodes de forte activité et des "hivers cryptos".

Il y a eu trois cycles jusqu'à présent. Le premier a atteint un pic en 2011, le deuxième en 2013 et le troisième en 2017.
Ces cycles semblent chaotiques mais ont un ordre assez précis :

1⃣Le prix du #bitcoin et des #cryptomonnaies augmente
2⃣L'activité sur les médias sociaux monte
3⃣De nouvelles idées émergent
4⃣De nouvelles startups se lancent
5⃣Le cycle recommence
Read 14 tweets
#TerraLuna Lessons Learnt

What can we learn from the collapse of one of the biggest crypto ecosystems, $Luna and $UST?

Here is what you need to know.

Too big to fail.

• There are no impregnable castles.
• There are no irreplaceable people.
• Neither crypto ecosystem is too big to fail.

“Things always become obvious after the fact”

Black Swan.

This is an unpredictable event that is beyond what is normally expected of a situation and has potentially severe consequences.

Black swan events are characterized by their extreme rarity, severe impact, and widespread insistence they were obvious in hindsight.

Read 16 tweets
1/ Stablecoins are the Trojan Horse that will bring smart contracts to the masses


They’re the probably the first and only real-world use-case of crypto today that is fully sustainable and rapidly scaling

A 🧵 on #Stablecoins and how they’ll take over the global economy
2/ Stablecoins are fundamentally a simple concept

A blockchain-based token whose value is pegged to another currency (typically the US dollar)

This results a superior form of fiat:

Fast settlement
Highly liquid
3/ Fully collateralized stabecoins can achieve these desired properties without external incentives

The economics incentives of DeFi have helped fuel their growth (subsidized yield)

But ponzinomics are not required for $USDT, $USDC, $BUSD, $DAI to exist and thrive
Read 25 tweets
Now that #Permissionless2022 is over, I want to share a quick thread with some thoughts & highlights. Thoughts first: It was energizing & full of creative, positive vibes. How refreshing to take the focus off price and hear from founders, creators, developers and thought leaders.
The amazingly talented individuals I heard from and spent time with reenforced what many of us already know: that the pace of innovation in #crypto and #blockchaintechnology will only continue to build on its momentum.
An economic downturn (e.g.a long bear market or even a recession) will provide the quiet time to get down to business & focus on building the “product,” something this industry feels ready for. A heartfelt thank you to the teams at @Blockworks_ & @BanklessHQ for the event.
Read 15 tweets
1/ NEW ARTICLE abt why USD-collateralized #stablecoins shld be backed 100% by cash deposited at Fed. Even T-bills don't work--bc they settle next day, but last wk a stablecoin collapsed w/in hours. Need *real-time* liquidity (only avail at Fed).@RiskDotNet…
2/ This is another in a long collaboration w/ Dr. Manmohan Singh of @IMFNews about financial sector plumbing. He has taught me so much over past decade.

* D.C. policymakers are moving away from view that #stablecoins should be issued only by insured depository institutions
3/ That's good IMHO bc deposit insurance funds should be insulated from crypto--bc settlement differences are too big (could trigger runs on banks at financial system core). Policymakers r moving toward ring-fencing the risk as they should IMHO

* Next ?=back w/ T-bills or cash? Image
Read 8 tweets
Algorithmic #stablecoins have become the most discussed topic in CT since the collapse of $LUNA and $UST.
1/ But what preceded these events and is there a future for also stables? The thread will be very long 🧵
2/ *Intro starts here*

Algorithmic stablecoins probably started with two articles from as far back as 2014:

◽️ Hayek's Money: A Solution for Cryptocurrency Price Stability" by @Ferdinando1970
◽️Cryptocurrency Stabilization Note: Seigniorage Stocks by @codedlogic
3/ @Ferdinando1970 proposed a cryptocurrency with an elastic supply that would be recalculated on the balances of all users in accordance with demand.
Read 25 tweets
STABLEcoins, stablecoins everywhere..

They (should) combine the stability of USD with the volatility of crypto.

Today we will deep dive into them:

🔍Uses cases
🔍Adotpion level
🔍Risks outcome
1/ They have always told you to leave your liquidity in stablecoins.

Until #lunaterra was recently exploited.

That's why we think it is necessary to give some insights into how they are organized.
2/ #Stablecoins aim to reduce the volatility present in #crypto, anchoring their value to another asset.

Their specific use includes payments, transfers, and settlements.

Users exchange fiat money for a #stablecoin before trading #cryptocurrencies.
Read 23 tweets
Imagine your fiat money will gives you an incredible apy, applicable in #DeFi and tradable in 1:1 pairs. All without the fear of a potential collapse and loss of your stable coin like $UST $USDT

$LCX introducing tokenized Euro ( $USD) on the blockchain…
What is the benefit of tokenized fiat money vs #stablecoins

Have in mind that the on-chain euro is always backed 1:1 by not on-chain euro and it’s always possible to change it back. Its not a stable coin! It’s the real Euro on the Blockchain!
How to get tokenized Euros?
The picture below explains the process pretty good. It’s all possible because of the e-money law of the EU and LCX licenses.
$LCX is one of the few crypto companies which is regulated and supervised by a financial market authority! Image
Read 13 tweets
Bear Market Mental Models

The bear market is hard. Many people lost the wealth created during the bull market.

These mental models can help you navigate a bear market and prepare for bull recovery.

You don't have to be always right.

Even the price of some of your investments can go to 0, like $LUNA or $FTM. This doesn't matter. What is matter is an average return from your portfolio.

Don't bet on one horse.

You are not diversified.

Diversification mostly matters when is a fear in the market. Holding dozens of altcoins is not diversification. You should have also different digital assets, not just crypto tokens.

Read 20 tweets
Quick thread of short and simple videos explaining #stablecoins

First, a video on the 3 primary categories of stablecoins, including @Polkadot's native, decentralized, over-collateralized, multi-chain stablecoin $aUSD:
Here is a 2.5 minute introduction to the $aUSD decentralized stablecoin and its key characteristics:
1. Stable
2. Over-collateralized
3. Censorship-resistant
4. Secure & Efficient
5. Natively multi-chain
If you're a builder looking to integrate with $aUSD, the @AcalaNetwork team and 10 other @Polkadot parachain teams have launched the $250 million aUSD Ecosystem Fund to support early stage projects building with aUSD.

Check out more info and apply here:
Read 4 tweets
Quick thread on @CryptoEQ Fundamental Ratings as we get TONS of questions around them.... especially in a bull market when XYZ coin is pumping and outpacing #BTC and #ETH
We list ~50 crypto assets but only have a Fundamental rating on ~30. Why so few?

Because that's all that ACTUALLY matters in the #crypto ecosystem.

And, if we're being honest, probably just 15 but we feel a bit obligated to cover the crap/scam coins in the top 30 as warnings Image
The top ~15 assets make up ~90% of the market cap.
With ~5 of those being #stablecoins and 2 are wrapped assets (#stETH and #WBTC)

So, by and large, we may seem selective but we cover 90%+ of the MC and 99%+ of what is actually legitimate, innovative, or intriguing.
Read 16 tweets

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