STEEMIT CRYPTO ACADEMY: WEEK-7 HOMEWORK POST FOR PROFESSOR @gbenga - THE STABLECOIN ECOSYSTEM AND GEMINI DOLLAR (GUSD).
Hello everyone in the steemit family, a big thanks to @gbenga for his week-7 lectures, here is my homework post.
THE STABLECOIN DECENTRALIZED FINANCE ECOSYSTEM
Tthe Stablecoin is one of the very many Decentralized Finance (DeFi) ecosystem which consists other protocol/projects like the Gemini Dollars, DAI and many others. Stablecoins are known for bridging the gab between cryptocurrencies and fiat currencies and thereby reducing the volatility that might accompany a digital asset.
BENEFITS OF THE STABLECOIN ECOSYSTEM
•No Intermediaries; Unlike the long-existing centralized financial institutions like the bank, platforms in the ecosystem of Stablecoins which is under decentralized Finance doesn't not operate with any form of Intermediaries.
Funds Transfer time.They allow 24/7 funds transfer unlike the traditional financial service providers like the banks which would not allow funds to be transferred outside their business hours.
HOW THE STABLECOIN ECOSYSTEM WORKS.
As the name implies, stablecoins are made to provide stability to their coins and assets and they do this by pegging the value of their token to fiat currencies like the U.S Dollar or physical assets like gold (as in the case of Helium HNT).
These tokens are pegged using real collaterals, this is to ensure that the token maintains a 1:1 ratio with the asset it is pegged with.
GEMINI DOLLARS.
This is one of the platforms/protocols that belong to the Stablecoin ecosystem. The main aim for the development of Gemini Dollars (GUSD) was to ensure that funds held by state street in which it is backed up with is scalable and usable.
It is pegged in the ratio of 1:1 with the USD. It is always being audited by BMP, a financing firm in order to be sure that the Gemini Dollars GUSD token that is being circulated is equivalent to the USD that the platform has reserved.
IMPORTANCE OF GEMINI DOLLARS.
Fast transaction speed, low transaction costs, reduced asset volatility; these are the things you will benefit from when you use Gemini Dollars as you will also gain total ownership of your money while enjoying these benefits.
In addition to the above benefits, Gemini GUSD also permits you to buy and sell other cryptocurrencies via the Gemini exchange platform without having to convert your cryptocurrency to USD.
CONCLUSION.
The Stablecoin ecosystem is a wonderful niche in cryptocurrency especially with the fact that your token will be stable and less volatile.
The Gemini GUSD is one of the very best platforms or protocols that you can find in the Stablecoin ecosystem. I hope this my work is helpful to you, thanks for your time.
Thanks for being a part of my class and for participating in this week's assignment. I hope you learned from the class as the aim of the school is to teach and allow people to learn alongside.
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