stablecoins

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The crypto market has gained another 3.9% in the past 24 hours, reaching a capitalisation of $1.18 trillion. It has diverged from the stock indices, which have fallen sharply in the previous days due to expectations of a rate hike.

Bitcoin has surged more than 15% in two days, revisiting the area of April highs just above 30k. However, this is where the recovery has paused. Bitcoin needs to consolidate a bit before it can resume its ascent. Moreover, there are doubts that the cryptocurrency rally will continue soon, as the stock indices create a challenging environment for risk-sensitive assets across the board.

The technical targets for the BTCUSD correction are the 29.3 and 28.5 levels, 76.4% and 61.8% of the latest rally, respectively. If the decline is halted at either of these levels, we could expect new multi-month highs soon.

Table of Contents · What is Acala (aUSD)? · How does Acala (aUSD) work? · What makes Acala (aUSD) unique? · Who created Acala (aUSD)? · Closing thoughts Since its launch over a decade ago, the cryptocurrency industry has evolved to become an integral part of the financial space. The nascent sector promises to deliver an open-source future that boasts decentralization, evenly distributed power, more transparency, and less trust. However, the sector faces multiple issues that currently inhibit it from making good on its promise. One of the most significant pain points in the crypto industry is extreme volatility, which causes wild price swings in digital asset prices. This shortcoming makes it nearly impossible to use cryptocurrencies as a medium of exchange. Hoping to address this issue, developers created stablecoins, which are pegged to a fiat currency in the ratio of 1:1. By acting as a volatility hedge, stablecoins quickly attained mass adoption in the crypto space despite their non-speculative nature. Nonetheless, most stablecoins run on a single blockchain network. As a result, their adoption is capped, seeing as the assets that serve as stablecoin collateral are limited. After realizing that cross-chain communication in blockchain technology serves the same role as the internet in an intranet setup, Acala sought to address the collateral issue by offering a stablecoin protocol that serves as the building block of decentralized finance (DeFi) in the Polkadot. Acala chose to build its stablecoin protocol on Polkadot because it powers public, consortium, and private blockchains. This feature enables true interoperability as well as economic and transactional scalability. Watch the Acala (aUSD) Deep Dive Video and Subscribe to the KuCoin YouTube channel: https://youtu.be/__t4RnDA-Zs How Does Acala (aUSD) Work? The Acala cross-chain stablecoin network seeks to develop a stable currency that enables low-cost borderless value transfers for all blockchains that are connected in a network. To increase the collateral supply, the protocol allows the use of assets on Polkadot or any other connected blockchain. By leveraging Polkadot’s shared security system, Acala aims to offer the highest security. The protocol also plans to achieve censorship resistance through its consortium setup and token release model. Additionally, Acala seeks to use its specialized blockchain network to set up a customized fee schedule while maintaining high security. The Acala protocol also plans to become a futureproof network that features forkless and non-disruptive upgrades. To achieve this, Acala intends to leverage on-chain governance. With most crypto platforms facing liquidity issues for staked assets, Acala leverages the Homa protocol, Which establishes a non-custodial trustless and cross-chain staking pool, where users stake their token and receive a L-Token (e.g. stake DOT and receive LDOT) that represents the principle staked asset plus the staking yield continuously accruing. L-Token are tradeable and liquid across all chains on the Polkadot & Kusama ecosystem. They are also redeemable for the underlying asset. What Makes Acala (aUSD) Unique? Acala features a multi-collateral-backed cryptocurrency dubbed the Acala Dollar Stablecoin (aUSD). This cryptocurrency is pegged to the US dollar in a 1:1 ratio. Unlike other stablecoins, aUSD is completely decentralized. The aUSD stablecoin can be created from blockchain assets connected to the Polkadot network. Anyone that owns Acala-supported cryptocurrencies can use them to create aUSD by creating a Collateralized Debt Position (CDP) through the Honzon protocol. The Honzon protocol is a dynamic ecosystem of CDPs. Alternatively, users can acquire aUSD tokens by buying the tokens from brokers or exchanges. The aUSD stablecoin can be used on any blockchain connected to Polkadot. Applications on the chains can also leverage aUSD. To maintain aUSD’s stability, Acala combines an automatic risk management algorithm within the Honzon protocol and community governance. The Acala network features a governance token dubbed ACA. This token has three use cases. ACA’s first application is serving as a network utility token. Acala users need ACA to pay transaction fees, scalability fees (interest rate on loans taken on aUSD), and penalty fees in the event of liquidation. ACA holders can propose network upgrades and risk level adjustments, which the elected on-chain General Council can either approve or turn down. It is worth noting that holding ACA does not entitle Acala users to any returns the network generates. The final use case of the ACA token in solving contingencies. In the event of a sudden plunge in the price of a collateral asset, the Acala system will liquidate and sell ACA tokens automatically to prevent the under-collateralization of CDPs. Who Created Acala (aUSD)? Four individuals, namely Betty Chen, 0xThreeBody, Ruitao Su, and Bryan Chen, co-founded Acala. Before Acala, Betty co-founded Laminar and served as its COO. She is also the co-founder of Flowingo. Ruitao also co-founded Laminar and served as its CEO. Additionally, Ruitao founded Less Code Limited. Bryan previously served as the CTO at Laminar and is a Polkadot ambassador. The Acala team also comprises Dan Reecer as its Chief Growth Officer. He previously worked in the field of Web 3 and promoted the launch of @Polkadot and @Kusama Network. Closing thoughts By functioning as a decentralized stablecoin protocol, Acala positions itself as a revolutionary protocol that helps unlock the true potential of the crypto industry. Through aUSD, the Acala network helps minimize the crypto sector’s volatility, allowing for more adoption and use in DeFi. Sign up on KuCoin, and start trading today! Follow us on Twitter >>> https://twitter.com/kucoincom Join us on Telegram >>> https://t.me/Kucoin_Exchange_New Subscribe YouTube Channel >>> https://www.youtube.com/KuCoinExchange Download KuCoin App >>> https://www.kucoin.com/download Source: KuCoin

Table of contents · What is USD Coin (USDC)? · How does USDC work? · What is the advantage of USDC? · How is USDC different from UST? · Opportunities for the future · Conclusion The crypto ecosystem has evolved rapidly since the launch of Bitcoin (BTC) in 2009. Over the years, the crypto market has quickly expanded, hitting a total market cap of $2.3 trillion during the 2021 bull rally. However, these gains did not last, and the marketplace quickly plunged, losing over $1 trillion of its market cap. With the industry being historically volatile, it is only natural that crypto adopters seek an instrument to protect their crypto holdings against the wild price swings in the space, and then stablecoins become the safe haven. What is USD Coin (USDC)? Launched on September 26, 2018, USDC is a fully collateralized stablecoin pegged to 1:1 to the US dollar. It is an alternative to other USD-backed cryptocurrencies like Tether (USDT) or TrueUSD (TUSD). It was worth mentioning that USDC can be redeemed back to USD at any time. The execution of issuing and redeeming USDC tokens is ensured with a smart contract based on the blockchain. At the moment, there is $53.1 billion worth of USDC in circulation. USDC was created by CENTRE, an organization founded by crypto exchange Coinbase and financial technology (FinTech) firm Circle. To ensure transparency, the Centre Consortium maintains USDC’s peg to the US dollar, and Circle uses a range of assets, including dollars, T-bills, and other highly liquid investments. USDC was issued on the Ethereum blockchain in the early period. With the booming of crypto, it is compatible with several blockchains, including Ethereum, Algorand, Solana, TRON, and other major public chains. Currently, KuCoin has supported deposit USDC with Ethereum, TRON, KCC, Algorand, ARBITRUM, and OPTIMISM networks. Read next: Altcoins: Ripple Crypto - What Is Ripple (XRP)? Price Of XRP | FXMAG.COM How does USDC work? A USDC token is created and requires 1 US dollar to be deposited in the issuer's bank account. The issuer uses USDC smart contracts to create an equivalent amount of USDC. The newly minted USDC are sent to the user, while the substituted US dollars are held in reserve. Then, when a customer wishes to redeem USDC back for dollars, the USD Coins are permanently destroyed in order to keep a consistent backing. The entire concept of stablecoins depends on there actually being a 1-to-1 backing. So trust and transparency are most important and essential for the stablecoin protocol like USDC. And USDC cooperated with the top-five accounting firm Grant Thornton to provide a high level of transparency and to maintain full reserves of the equivalent fiat currency. Click here to learn more. What is the advantage of USDC? By converting the cryptocurrencies like BTC, ETH, and other altcoins to USDC, investors can hedge against the risk of volatility in the crypto market. Furthermore, as a digital currency, it brings US dollars to the crypto world, avoiding traditional financial instruments and institutions, bypassing hyperinflation, and completing global transactions almost instantaneously and at low cost. In the crypto world, the USDC can be used to buy a variety of products across different decentralized applications (Dapps), exchanges, and blockchain-based games. Also, it opens up new opportunities for trading, lending, risk-hedging, and more. How is USDC different from UST? At the moment, there are four types of stablecoins. These are stablecoins that are fiat-collateralized, crypto-collateralized, algorithmic uncollateralized, and hybrid. TerraUSD (UST), a stablecoin from TerraForm Labs, is an algorithmic stablecoin that leverages a complex algorithm linked to Terra (LUNA), another crypto token from TerraForm Labs. While USDT has maintained its peg against the US dollar, UST’s algorithmic backing failed after the Terra network lost over $39 billion of its value. At the moment, UST is changing hands at $0.055 after losing nearly 95% of its value since the start of the year. Unlike UST, USDC is fully collateralized, meaning that it is difficult to depeg it. With USDC being fully backed by highly liquid yet stable assets, the stablecoin has stood the test of time. Read next: Altcoins: What Is Polkadot (DOT)? Cross-Chain Transfers Of Any Type Of Asset Or Data. A Deeper Look Into Polkadot Protocol | FXMAG.COM Opportunities for the future With Centre leveraging a wide range of assets to maintain USDC’s stability, the consortium has helped the stablecoin secure a leading spot as a hedging instrument against volatility in the crypto market. USDC has a current market cap of over $53 billion, which makes it the fourth-largest crypto by market capitalization. Meanwhile, As the second-largest stablecoin after Tether (USDT), USDC has been accepted by as many wallets, exchanges, service providers, and Dapps as possible. With USDC having an impeccable reputation, it stands a chance to surpass USDT to become the ultimate stablecoin. Conclusion By using highly liquid yet stable assets to maintain its peg against the US dollar, USDC positions itself for success. Additionally, USDC’s backing by Circle and Coinbase helps boost the stablecoin’s adoption, seeing as both companies are trusted in the crypto industry. Find The Next Crypto Gem On KuCoin! Download KuCoin App>>> Sign up on KuCoin now>>> Follow us on Twitter>>> Join us on Telegram>>> Join the KuCoin Global Communities>>> Subscribe to YouTube Channel>>> Follow FXMAG.COM on Google News

Image credit: Diverse Stock Photos || Would that those shiny coins were the real thing. Metal coins are real. Code, not so. As I have said before, look at the underlying economics of an investment rather than its external form. It doesn’t matter whether it is public or private. The form of an investment does not affect its returns, for the most part. I grew up in investing as a risk manager within life insurance and fixed income. We faced three main risks: credit, liquidity, and duration. We had lesser risks as well, like FX, sovereigns, convexity, etc. My main goal was to see the firm survive under all reasonable circumstances. My secondary goal was to improve profitability over those same circumstances. In doing that, we could make some small “side bets.” Buy an underpriced Canadian dollar bond. Buy a broken convertible bond of a beaten down company. Buy underpriced MBS where the models are overstating refinancing risk. Things like that. We could not make those side bets too large, but we could put a few on to try to make some money for the firm. We would match assets against our likely liability cashflows. We knew that 99%+ of the time, we would be fine. I can’t imagine what the so-called crypto banks are thinking. Much as they deride banking generally, they don’t have the vaguest idea of what they are doing. They should hire an investment actuary to limit what they do. Imagine a world where banks don’t care about currency risk, and some fail because the temptation to reach for yield causes them to buy asset in currencies that are weak… leading them to lose capital on net. This is the nature of crypto lending and borrowing. As Aristotle might have said, “Crypto is sterile.” It doesn’t produce anything. So don’t lend out crypto for a return… you may lose you principal in the process. There is no good reason why you should earn a return exceeding Treasuries plus 1% in lending crypto. But no one in crypto considers risk control. In one sense, I’m not sure how it could be done, unless you limit yourself to one major cryptocurrency — Bitcoin or Ethereum. The grand questions should be: Can I be sure of making payments over the next three months?Is my leverage low enough that the mélange of assets that I own will be able to cover my liabilities? Is there anything I can do to promote long-term survival? With cryptocurrency banks and stablecoins these concerns are ignored. They take risks that no bank or insurance company would take and with far less capital than would be reasonable. I encourage you to sell your crypto and buy gold, stocks, bonds, and other dollar-denominated assets.

Decentralised stablecoin Fei may cease its operations. HUSD depegs following the closure of market maker accounts. Attacker loses 5 ETH after trying to exploit Near Protocol’s Rainbow bridge. Weekly DeFi Index This week’s price, volume, and volatility indices were negative at -9.59%, -12.41%, and -27.80%, respectively. DeFi Index Tokens News Highlight FEI, one of the largest decentralised stablecoins, may cease operations. Fei Labs Founder Joey Santoro announced that the Fei (FEI) architecture will be shutting down because of “technical, financial and potential future regulatory risks.” FEI maintains the peg using protocol controlled value (PCV), a mechanism to algorithmically manage a reserve of tokens. Santoro also published a proposal to redeem FEI tokens to DAI and to distribute protocol controlled value between TRIBE (the governance token of Fei Protocol) holders. HUSD, a dollar-backed stablecoin issued by Stable Universal (a Huobi Capital invested company) broke from its peg on 17 August and traded at a low of US$0.85. This came after FTX CEO Sam Bankman-Fried and TRON Founder Justin Sun were revealed to be in talks to purchase a majority stake in the Huobi Global crypto exchange. However, HUSD clarified that the depeg was connected to liquidity issues after several account closures, including market maker accounts. It has since recovered the peg. An attacker tried to exploit Near Protocol’s Rainbow bridge by submitting a fabricated block, but failed and lost 5 ETH. Rainbow validators’ automated security processes blocked the transaction and took away the safe deposit of 5 ETH put up by the attacker. DEX Protocols Metrics Lending Protocols Metrics Charts on Layer 2 Projects Overall, the L2 market dropped by -3.06% in the last 7 days. The TVL of all L2 categories followed the downtrend. Optimistic rollup projects fell by -4.10% and zero-knowledge rollup projects by -1.16%. Ethereum’s TVL plunged by -9.84%. The TVL for all optimistic rollup projects were negative last week, and Boba Network dropped the most at -10.06%. Similarly, almost all ZK rollup projects’ TVL plummeted except dYdX, which grew +14.07%. Further Reading GetBlock, the provider of high-performance endpoints offers seamless connection to Cronos nodes to its clients Gnosis Safe to airdrop 50 million Ethereum tokens to wallets Ethereum devs confirm previously announced merge date Tether reveals 58% decrease in commercial paper holdings in latest attestation BendDAO hit by insolvency crisis as Ethereum reserves drained Ronin bridge hackers used ChipMixer to launder over $73M of stolen funds Ethereum community splits over solutions for transaction censorship Dogecoin-Ethereum bridge expected to go live in 2022 Aave calls on members to commit to Ethereum PoS chain Acala recovers 2.97 billion of aUSD stablecoin minted during exploit Authors Research and Insights Team Get fresh market updates delivered straight to your inbox: Subscribe to newsletters Be the first to hear about new insights: Follow us on Twitter Tags CRYPTO RESEARCH CRYPTOCURRENCIES DEFI LAYER 1 LAYER 2

A lot of information is provided by Twitter profiles. Information came from many different sectors: financial, economic, investment and cryptocurrencies market. Inflation continues to be the main topic of consideration. The war in Ukraine generates huge losses, even financial ones. In this article: The lodging sector in China The difference in investing decision The payment of $200 million More about Stablecoins Financial losses in Russia Inflation expectations What will the reconstruction of the hotel sector look like? From the UBS tweet, we learn that USB Research is looking at the hot selling sector in China. As China's lodging sector gradually recovers from COVID, in a post-pandemic era, what will the China hotel sector's recovery trajectory look like? #UBSResearch analysts address this pivotal question. #shareUBS — UBS (@UBS) September 23, 2022 The lodging sector in China deteriorated significantly as a result of the Covid-19 pandemic. The current zero-covid policy of the Chinese government is trying to revive its economy. UBS Research is looking at what the recovery of this sector may look like. In a post-pandemic era the sector is not in good condition, we can expect recovery in this sector to be difficult and slow. Smartphone vs Computer Morningstar Inc announces the results of its research. In these studies, the difference in investing decision on different devices was examined. Recent research found that the investment decisions we make on our smartphones aren’t the same as those we would make on our personal computers.Here's why investors might want to stick to using their phones for social media and video calls: https://t.co/BGOUXtrtZC — Morningstar, Inc. (@MorningstarInc) September 23, 2022 Nowadays, we use smartphones not only to use social media but also to invest. Morningstar Inc research has shown that we make different investment decisions depending on whether we use a telephone or a computer. Smartphone apps make trading easier than ever but is it mean that also will be better in results. Payment of $200 million CNBC Now tweet reports boeing will bear costs after misleading investors after deadly 737 Max crashes. Boeing to pay $200 million to settle SEC charges that it misled investors after deadly 737 Max crashes; former CEO also settles same charges https://t.co/otVFt8mKMi — CNBC Now (@CNBCnow) September 22, 2022 Such action, despite the fact that it is a burden on the company's account balance, can warm up the image. In this way, the company also tries to regain the trust of investors. Will the final of these activities have positive horses for the company? What are Stablecoins IMF on Twiiter speaks about Stablecoins and its risk. The video posted in the tweet provides an explanation of Stablecoin. Stablecoins are far from the revolutionary ideals of crypto’s creators and are not without risk. Read our latest Back to Basics F&D article and watch this video to learn more. https://t.co/n7P73Iib81 pic.twitter.com/pfasjFKzji — IMF (@IMFNews) September 23, 2022 The cryptocurrencies were created as an alternative to banks. The Stablecoin market is still growing and still a long way to the level of cryptocurrencies such as Bitcoin or Ether. Like any other asset, it is burdened with risk. It is worth taking a closer look and getting to know better details about Stablecoin and its surroundings. The Russian bank loss Reuters Business in its tweet informing about how much the Russian bank has lost as a result of the war. Russian banks lost around $25 billion from Ukraine conflict - central bank official https://t.co/FO07Oqr1Lg pic.twitter.com/MjmCkMaQ07 — Reuters Business (@ReutersBiz) September 23, 2022 War is not only a weapon, and conflict is also a loss. Russia, by causing a war with Ukraine, exposed itself not only to losses in people and weapons, but also to financial losses. We can expect that as long as the conflict continues, losses will increase. Russia, continuing the war, can expect losses greater than just $25 billion. Financial losses can significantly worsen the economic situation of a country, as well as worsen the standard of living of its citizens. Inflation expectations Mad Money On CNBC quotes Jim Cramer in his tweet. Jim Cramer discusses the level of future inflation. “The charts, as interpreted by Larry Williams, suggest that inflation could soon cool down substantially – soon – if history’s any guide,” @JimCramer says. https://t.co/s8rdiQ6CdH — Mad Money On CNBC (@MadMoneyOnCNBC) September 22, 2022 Inflation expectations have been the main topic for several months now. Economies around the world are trying to fight inflation, for example by raising interest rates. Larry Williams suggests that inflation could cool down significantly soon. Most of the expectations regarding inflation are that inflation will remain high. From the observation of the reports, we may have the opposite opinion.

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