Stable Coins - Digital Dollars
The idea of stable coins is in the name, stability.
All you need to know to understand stable coins is that they are crypto tokens that are pegged, or equal a real world asset. (Like the US dollar)
DAI, for example, has all of the properties a crypto currency, but 1 DAI will always = $1 US Dollar.
Q: What are the benefits of using a stable coin like DAI or USDC?
- You can pay an employee or freelancer in DAI, knowing the price won't fluctuate. This way, a $2,000 monthly salary can't turn into $1,000 overnight.
- You can swap stable coins like DAI for ANY cryptocurrency on an app like Uniswap. There is no US dollar or credit card option here. On centralized exchanges like Coinbase or Binance, you only can buy what they have to offer.
Q: Are there stable coin crypto currencies that are tied to the EURO?
A: Yup, stable coins can be tied to any fiat currency, and while US Dollar based stable coins are most popular, we're starting to see others come about.
List Of Stable Coins:
- DAI = $1 US dollar. (Decentralized)
- USDC = $1 US dollar. (Owned by Circle)
- USDT = $1 US dollar (Tether)
- BUSD = $1 (owned by Binance)
- sUSD = $1 (Synthetix protocol)
- LUSD = $1 (decentralized via Liquity protocol)