From f9b39cde9aa3890029dd70b17b4e8f9933b17c16 Mon Sep 17 00:00:00 2001 From: bt3gl <1130416+bt3gl@users.noreply.github.com> Date: Fri, 23 Sep 2022 23:20:25 -0700 Subject: [PATCH] =?UTF-8?q?=F0=9F=A5=93=20add=20some=20notes=20on=20stable?= =?UTF-8?q?coins?= MIME-Version: 1.0 Content-Type: text/plain; charset=UTF-8 Content-Transfer-Encoding: 8bit --- defi_and_trading/stablecoins/README.md | 24 ++++++++++++++++++++---- 1 file changed, 20 insertions(+), 4 deletions(-) diff --git a/defi_and_trading/stablecoins/README.md b/defi_and_trading/stablecoins/README.md index 99ad67f..b6a69c4 100644 --- a/defi_and_trading/stablecoins/README.md +++ b/defi_and_trading/stablecoins/README.md @@ -1,24 +1,40 @@ -## 💰 Stablecoins +## 💰 stablecoins
-### Fiat-collateralized stablecoins +### tl, dr + +
+ +#### fiat-collateralized stablecoins * 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. +
-### Cryptocurrency-backed stablecoins +#### 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. ' +
-### Decentralized (algorithmic) stablecoins +#### 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. + +
+ +--- + +### resources + +
+ +* [high level intro from ethereum.org](https://ethereum.org/en/stablecoins/)