In “traditional finance”, we’ve got something called a derivative. In short, a derivative derives it’s value based on some underlying asset. In the “new finance” world of blockchain and DeFi, we’ve got something called a stablecoin, where the price of the coin is pegged to some underlying asset. So a stablecoin is just a derivative… Continue reading When does it stop being a stablecoin?
For a while I’ve wanted to write something about stablecoins, these tokens on the blockchains, that are backed by some underlying asset. Usually we associate stablecoins with those backed by a currency, like USD or Euros. But it doesn’t need to be backed by currency, it can be backed by commodities, stocks, bonds, etc. This… Continue reading Stablebomb