diff --git a/defi_and_trading/stablecoins/README.md b/defi_and_trading/stablecoins/README.md index 69b727a..d01f9a3 100644 --- a/defi_and_trading/stablecoins/README.md +++ b/defi_and_trading/stablecoins/README.md @@ -1,11 +1,7 @@ -## 💰 stablecoins +## stablecoins
-Screen Shot 2022-10-07 at 1 32 54 PM - - -
### tl, dr @@ -13,7 +9,9 @@ #### fiat-collateralized stablecoins -* Fiat-collateralized stablecoins are stablecoins that are backed by fiat currencies like the US dollar. +
+ +* fiat-collateralized stablecoins are stablecoins that are backed by fiat currencies like the US dollar. * Their reserves are held by a central entity. The most popular fiat-backed stablecoins at this time are USDC, USDT, and BUSD.  * The main weakness of fiat-collateralized stablecoin is centralization as the collateral of a fiat-collateralized stablecoin is held by one independent party. @@ -21,6 +19,8 @@ #### cryptocurrency-backed stablecoins +
+ * This motivated the development of more decentralized, cryptocurrency-backed stablecoin. * The main player in this category today is MakerDAO’s Dai stablecoin. * While crypto-backed stablecoins are good for their decentralization, they are capital inefficient. ' @@ -29,11 +29,33 @@ #### decentralized (algorithmic) stablecoins +
+ * The average consumer or institutional investor would rather mint 1:1 through a centralized fiat stablecoin than have to over-collateralize by at least 150% to issue a decentralized stablecoin. * For this reason, developers set out to create non-collateralized (or algorithmic) stablecoins. * These coins maintain their peg without having to directly collateralize the issuance. * The two largest forces in the market in this category are Terra and Fei. +
+ +--- + +### in this dir + +
+ +* [curve](Curve.md) +* [dai](DAI.md) +* [(rip) ust](UST.md) + + +
+ +
+ + + +
--- @@ -42,4 +64,5 @@
-* [high level intro from ethereum.org](https://ethereum.org/en/stablecoins/) +* [stablecoins by the ef](https://ethereum.org/en/stablecoins/) +