Stable coins are cryptocurrency assets have low volatility built into them and are useful as trusted a medium of exchange or store of value.
Types of stable coin
IOU stable coins are based on a centralized model of authority. The centralized authority is relied upon to be trustworthy and centrally controls an asset and issues stable coins that are redeemable for that asset.
Seigniorage Shares are a form of stable coins that algorithmically expand and reduce the supply of coins issued on the network to maintain a stable currency price. This form of stable coin is similar to how central banks maintain the stability of fiat currencies.
Stable coins that use collateralization use on-chain trustless issuance where assets are pledged by users to be used as collateral on the blockchain. Stable coins using collateralization are stabilized naturally through users using their knowledge overcollateralization, market efficiencies, complimentary incentives, profit motives, fallback procedures, and other market based information to maintain price stability.
An overview of stablecoins
Maker for dummies: a plain English explanation of the Dai stablecoin
Stablecoins: A holy grail in digital currency
The search for a stable cryptocurrency
Documentaries, videos and podcasts
What are Stablecoins? (Tether, MakerDAO DAI, Basecoin/Basis, Saga)
May 13, 2018
What is a Stablecoin? Most Comprehensive Video Guide
May 25, 2018
- Dai (cryptocurrency)Dai is a type of cryptocurrency known as a stable coin.
- Phi (cryptocurrency)Phi is a decentralized stablecoin.
- Tether (cryptocurrency)Tether is cryptocurrency that works through the open source Omni Protocol. It supports US Dollars (USD), Euros (EUR) and Japanese Yen (JPY).
- BasecoinBasecoin, now Basis, is developing a price stable cryptocurrency also known as a stable coin.
- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.