Contest Alert 📢: S4B Crypto Contest - Season 16
Greetings to you all steemains how are you all doing today I hope you are fine and in good health, today I will be taking part in the crypto contest season 16 organize by @waqarahmadshah
What is a stablecoin? |
|---|
Stable coins are a type of cryptocurrencies that are peg to an external market value of another commodity or currency, and in other words they tend to be more valuable than other volatile cryptocurrencies as a medium of exchange and example of currencies and commodity that they are being peg to are US dollar, gold, oil etc.
How do stablecoins maintain their value? |
|---|
Now this is one of the most asked questions in the realm of cryptocurrencies by investors, how do stable coins maintain their value?.
But you know according to research I have learnt that stable coins maintain their market value through collateralization mechanisms, algorithmic adjustments, and balancing market demand and supply.
In a sense that it maintains their stability through maintaining and keeping in observation reserve assets as collateral or through algorithmic formulas that are supposed to control supply of the particular assets
What are the main uses of stablecoins? |
|---|
When it comes to the use of stablecoins it can range from as a means or medium of exchange, store or retain of value and as a trading asset. It also provides the speed and security features on a blockchain and lastly also eliminate certain volatility of other cryptocurrencies.
How do stablecoins affect cryptocurrency market liquidity? |
|---|
A stablecoins liquidity is only aimed at providing liquidity for stablecoin pairs in a decentralized manner or pool of funds and this pools are being managed by an automated smart contracts which comprises of stablecoins and other cryptocurrencies that also provides liquidity on the blockchain.
This will be the end of my entry and I will like to invite
@damisvilladiego
@starrchris
@memamun
Thank you, friend!
I'm @steem.history, who is steem witness.
Thank you for witnessvoting for me.
please click it!
(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)
The weight is reduced because of the lack of Voting Power. If you vote for me as a witness, you can get my little vote.
Upvoted! Thank you for supporting witness @jswit.
Hi, @edidiongeffiong,
Thank you for your contribution to the Steem ecosystem.
- Explore Steem using our Steem Blockchain Explorer
- Easily create accounts on Steem using JoinSteem
- Delegate to @ecosynthesizer and wtiness vote @symbionts to support us.
Thanks for your support