Steemit Crypto Academy Week 6 Task: Stable coins | lecture by @yohan2on
Hello Steemit Community!
Introduction
This is my first Homework post as I am new to steemit community so I am in learning phase. Thanks to my cousin @faisee who helped me and introduced me to steemit community.I learnt new things from this week’s lecture from @yohan2on and trying to absorb it. Let’s see how the homework goes so let’s get to it.
What is Stable coin?
It is the coin which do not have variation in its worth so its value remains stable. It is possible with the help of reserve assets.
I will select DAI among other options. It was launched on 18 December 2017. It was created by MakerDAO. Its value is equal to 1USD. It was built on ethereum blockchain.It is type of stable coin and is through automated system of smart contracts on ethereum blockchain. If the price of DAI goes too high or too low then MKR tokens are burned or created to take back the price close to 1 USD. DAI is stable from last three years with slight variation from one dollar price peg.
The main reason behind its launch was to minimize the crypto market high price volatility . There are many other stable coins like USDC,PAX etc
How DAI is used on MakerDAO
It is used as a payback of Loan on MakerDAO lending platform, a borrower will take loan and he can only payback with DAI.It is created when a borrower take loan on MakerDAO and destroyed when it is paid.
Advantages of DAI
• It can be easily usable and can be traded into other crypto currencies like Bitcoin and Ethereum.
• Investors trust is built due to its stability.
• It is decentralized which means it is independent of banks.
Conclusion
There are many other stable coins but DAI is stable as compared to others and gaining trust of people day by day.
This is all from my side. Hopefully I have justified my points.
Hi @sikandar5066
Thanks for attending the 6th -Crypto course and for your effort in doing the given homework task.
Feedback
This is good work. It's an interesting read,
though your article came short of the minimum required word count '300'. Your article content was around '250words'. For higher rewards, you must abide by the rules and guidelines of the homework task.
Homework task
6.5
Thank you @yohan2on. It was my first homework post.I will try to be better next time.
nice to see you introduction if you like to enter in steem challenge community then welcome to steem challenge and join subcribe to make your role awesome in steem challenge welcome to steemit join steem challenge family
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