- The Dypto Times
- Another day, another dollar. Kind of.
Another day, another dollar. Kind of.
Stablecoins, learn to earn, and a really bad joke
A man is sitting in the movie theatre, patiently waiting for the show to start. In walks an owl who casually plops down beside him.
“Are you an owl?”
“Yes,” he replied.
Flabbergasted, the man asked, “What are you doing at the movies?”
The owl shrugged. “I enjoyed the book.”
Sorry about that….
Let’s talk about crypto. We’ve got some exciting updates to share, and while we’re at it, we’ll throw in some education. Hooooo’s ready? Let’s go.
Dypto Crypto Updates
If you’ve given a hoot about learning about all things crypto, you’ve probably spent a little time going through our flipbooks. Now is the time to get a jump on those if you’re falling behind. We’re excited to announce our Learn to Earn project is nearing completion.
You’ll learn about crypto and earn it as you do. It’s a great way for beginners to dip their toes in the pool before you start playing with the big boys. On top of that, we’re aiming for a fun and interactive learning experience.
What’s DAI coin? Is it going to the moon?
(Pro tip: It isn’t)
Curious about Solana? What about Layer 2 solutions? You can find all of these and more on our handy Cryptionary. We added several new terms this month.
Our DeFi Explorer is also still pushing forward. It isn’t live yet, but look for that in the coming weeks. We’ll be adding to it as new crypto projects go live! Not only can you be early, but you can…well, be early.
(That’s pretty much all we can do for you there.)
We want to give you the tools to do your own research, determine if a protocol is worth your time and investment, and then leave the rest up to you.
Term of the week - Stablecoins
A stablecoin is any cryptocurrency that is “pegged” to another currency. Many are pegged to the US dollar, such as USDC, DAI, and USDT. Some are matched up with the Euro, and you can find a stable for most major currencies.
They serve an interesting purpose in crypto.
For one, they allow people to trade efficiently. How do you know when to buy and sell ETH? After all, most traders prefer to buy low and sell high.
(A lot of them do the opposite.)
Without a way to trade ETH, BTC, or other major volatile assets to USD (or other fiat equivalent), there would be no way to know the value of these assets.
One ETH will always be worth one ETH. But how much is an ETH worth? If there wasn’t an exchange rate, crypto assets would be just another digital store of value. Stocks, real estate, and precious metals fluctuate in price compared to the value of various fiat currencies.
Crypto is no different.
Second, stablecoins allow protocols to build up a treasury that has fiat value. Let’s say your favorite project has 100 ETH and 10 BTC in the treasury. That’s great!
Until the market tanks.
Now imagine if the protocol has 5 BTC, 50 ETH, and $500k USDC in its treasury. It is more diverse and will hold more value if the market slides in the wrong direction. Many protocols have learned this the hard way, and the ones still around built their treasuries wisely.
Next, stablecoins allow new protocols to enter the market. Quality stables allow users the ability to borrow at a low-interest rate, earn yield on a stable asset, and diversify their holdings.