What Is a Stablecoin?

What Is a Stablecoin?

Cryptocurrencies are usually characterized by wild price swings and extreme volatility. But there is one cryptocurrency that is designed to be the exact opposite. They’re called stablecoins, and they play an important role in cryptocurrency markets. Unlike other cryptocurrencies, stablecoins have a stable price and are benchmarked to a fiat currency, such as the US dollar. Though stablecoins haven’t yet attracted as much mainstream attention as bitcoin or ether, they have become integral in the crypto ecosystem, offering a distinct set of uses that benefit investors, speculators, and other enthusiasts.

Stablecoins maintain a fiat currency reserve like the US dollar as collateral to issue a suitable number of crypto coins. Other forms of collateral can include precious metals like gold or silver, as well as commodities like oil. Most present-day fiat-collateralized stablecoins use dollar reserves. Such reserves are maintained by independent custodians and are regularly audited for adherence to the necessary compliance. Tether (USDT) is a popular crypto coin that is backed by dollar deposits and has a value equivalent to that of a single US dollar.

Originally, stablecoins were primarily used to buy other cryptocurrencies like bitcoin because many cryptocurrency exchanges didn’t have access to traditional banking. They are more useful than country-issued currencies because you can use them 24 hours a day, seven days a week, anywhere in the world —without relying on banks. Money transfers take seconds to complete.

Another useful feature of stablecoins is that they can work with so-called smart contracts on blockchains, which, unlike conventional contracts, require no legal authority to be executed. The code in the software automatically dictates the terms of the agreement and how and when money will be transferred. This makes stablecoins programmable in ways that dollars can’t be.

Smart contracts have given rise to the use of stablecoins not only in seamless trading but also lending, payments, insurance, prediction markets and decentralized autonomous organizations—businesses that operate with limited human intervention. Proponents hold that moving money via stablecoins is faster, cheaper, and easier to integrate into software compared with fiat currency.

About RoboFi

RoboFi (https://robofi.io/home/) is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.

About VICS

VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.

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